Although EM stocks have taken a beating in recent years, things may be looking up, writes Validea CEO John Reese in this week’s TheStreet.

Reese offers insight from Research Affiliate’s Rob Arnott, who thinks that, notwithstanding swelled valuations (based on Shiller PE ratios), “emerging-market stocks offer an attractive combination of depressed currencies, low valuations and strong momentum.” Using his guru-based stock screening models, Reese identifies the following five picks that could be poised for growth:

• Companhia Paranaense De Energia (ELP) generates, transmits, distributes and sells electricity in the Brazilian state of Parana, and scores highly based on its favorable revenue base, ratio of price-earnings to earnings-per-share growth and dividend yield.
• Mobil’nye Telesistemy PAO (MBT) is a Russian telecommunications provider that gets a thumbs up for its substantial size as well as favorable price-earnings ratio and growth in earnings-per-share. Price-to-cash flow and dividend yield add interest.
• NK Lukoil PAO (LUKOY), a Russia-based energy company, earns high marks for its attractive price-sales and debt-equity ratios. Cash flow-per-share and dividend yield are also a plus.
• Tim Participacoes (TSU) is a Brazil-based mobile telecommunications provider with persistent earnings-per-share growth and a favorable price-sales ratio.
• WNS Holding (WNS), a global provider of business process management services, scores well due to long-term earnings-per-share growth, a debt-free balance sheet, and a favorable ratio of price-earnings to growth in EPS.