Now that we know we want a significant portion of our portfolio outside the U.S. to hedge against the coming inflation, it’s time to consider some specific international stocks that offer exceptional opportunities.

I recently used StreetAuthority’s powerful country screening software to find which countries present the best opportunities for international investment. And in this article, I discussed the likelihood of companies in the technology and consumer cyclical industries likely outperforming in the near future.

Using this information, I built a stock screen that focuses on companies based in StreetAuthority’s Top Ten Countries that are in the “Consumer Cyclical” sector. I also considered a myriad of fundamental indicators to find these companies.

Top International Consumer Cyclical Companies

Indigo Books & Music (TSX: IDG, OTC: IDGBF)
Headquartered in Toronto, Indigo Books & Music is the largest book dealer in Canada with 247 retail stores across the country’s 10 provinces. The company sports a P/E of 6 and yields 3.2%.

The company’s revenue has been increasing steadily despite weaknesses in the economy and increased competition from online dealers. (The company itself has had a significant online presence since launching its own site in 2001.)

Revenues increased +1.9% year-over-year for the 52 weeks ended March 31. The company’s earnings, however, shrank significantly, largely because of taxes owed in the most recent year, compared with a tax refund in the previous year.

Shares in the company sank -14.5% in 2008 and have gained +11.9% so far in 2009. I don’t think the company’s best times are behind it. Going forward, the company’s dominant position in the Canadian market will pay off once again, and early in the recovery.

Pierre & Vacance (Paris: VAC, OTC: PRVCF)
Pierre & Vacance runs hotels and vacation residences and villages in France, Italy, Spain and Switzerland. The company’s properties are positioned to prosper once global tourism picks up. France and Spain are routinely the top destination spots in the world. Italy is also popular destination.

The company doesn’t suffer from seasonal changes in tourism, as its portfolio comprises properties suited for both winter and summer vacations. Its winter season tends to do about 75% of the business its summer season does. Most recently, that equated to revenues of 613 million euros reported for March 2009 compared with 810 million euros in September 2008, though all the profit is made during the summer months.

Despite the global downturn, the company’s revenues did not fall from previous seasons. Summer 2008 revenue actually increased about +1% from 2007, and winter 2009 revenues shrank only marginally.

The company has paid a 2.70 euro dividend for the past two years, giving its shares a yield of 5.4% at current prices. The company’s P/E is now 7.8, the lowest among its peers. Its price-to-sales ratio of .31 is the second-lowest in its class. Its return on equity is 16.5%, higher than all the major players in its market.

When vacations start to pick up again, Pierre & Vacance will be a prime beneficiary, and shareholders will be rewarded likewise.