After a run of disappointing performance, emerging market stocks are perking up, says Validea CEO John Reese in a recent article for Nasdaq. Since January, this class of securities has gained more than 34% and the upward trend is expected to continue. Reese advises, however, that while the trend is a welcome change for yield-starved investors, investing in emerging markets should be based on the sort of fundamental business analysis inherent in our guru-based stock screening models.

He offers the following high-scoring picks:

• NK Lukoil Pao ( LUKOY ), one of Russia’s largest energy concerns, is engaged in oil exploration, refining, marketing and distribution. The company earns high marks given its size and robust cash flow-per-share, as well as a strong revenue base and solid dividend yield.
• LG Display Co. Ltd. ( LPL ) , based in Seoul, Korea, manufactures thin-film transistor liquid crystal display, organic light emitting diode and other display panel technologies. The company’s favorable book-market ratio, return-on-assets and operating cash flow score well, bolstered by an expanding gross margin.
• Grupo Financiero Galicia ( GGAL ) is an Argentina-based financial services holding company that earns high marks for its ratio of price-earnings to average growth in earnings-per-share (P/E/G), which gauges fairness of price. The stock’s price-sales ratio adds appeal.
• Fibria Celulose SA ( FBR ) is a Brazil-based pulp and paper producer focused on renewable and sustainable forests. The company gets a green light based on its book-market ratio as well as a near doubling of return-on-assets. Operating cash flow exceeds net income, another plus under our models.