-Anyone buying chna em /fxi?.-
China E-Commerce Stocks to Buy After the Trade War Ends
https://money.usnews.com/investing/stock-market-news/slideshows/china-e-commerce-stocks-poised-for-a-comebackJuly 16, 2019
Today's Big Idea
E-Commerce Stocks to Buy After the Trade War
Stocks have been shaky in recent weeks after the U.S. and China exchanged their latest rounds of trade war tariff hikes. Chinese stocks have been hit particularly hard by the trade war – for instance, the iShares China Large-Cap ETF (ticker: FXI) is up 8%, but is far underperforming the S&P 500, which is up a staggering 20% since Jan. 1.
Despite concerns about the trade war’s impact on China’s economic growth, China’s e-commerce business is booming. Chinese online retail is a massive long-term investment opportunity, but buyers may still need to be selective given trade war pressures.
Here are seven Chinese e-commerce stocks KeyBanc analyst Hans Chung is watching.
1. Alibaba Group Holding (BABA). If the trade war is hurting growth in China, you sure wouldn’t know it by looking at Alibaba’s numbers. Alibaba just reported 50% earnings growth and 51% revenue growth in the most recent quarter, including 75% growth in cloud services revenue. In addition, Alibaba reported 721 million mobile active users, up 18% from a year ago.
Chung says feed monetization could drive double-digit incremental revenue growth and Alibaba’s Freshippo retail store margins should continue to improve over time. KeyBanc has an “overweight” rating and $240 price target for BABA stock.
2. Pinduoduo (PDD). Pinduoduo is a Chinese e-commerce company that allows customers to capitalize on group buying deals, mostly via the Tencent (TCEHY) WeChat mobile app. Chung says Pinduoduo’s unique team-purchase model helps streamline the value chain for customers and its early success in consumer-to-manufacturing sales is promising.
Chung said Pinduoduo is a solid long-term investment given the company’s massive scale, its potential for monetization, its differentiated artificial intelligence technology and its huge total addressable market. He says increased ad load and improved targeting should help drive monetization. KeyBanc has an “overweight” rating and $32 price target for PDD stock. – Wayne Duggan
Earnings today. Earnings season kicks into gear this week, with announcements expected today from CSX Corp. (CSX), Domino's Pizza (DPZ), Goldman Sachs Group (GS), JPMorgan Chase & Co. (JPM), United Airlines (UAL) and Wells Fargo & Co. (WFC).
In-Ad Text Image Graphic
Join an exclusive community who found a better alternative to stocks. Is art a good investment? Billionaire investors like Steve Cohen and David Geffen certainly think so. With double-digit returns in 2018, art was called “the best investment of 2018” by WSJ. Masterworks is an exclusive platform that gives investors direct exposure to blue-chip art by selling shares in paintings by Andy Warhol, Claude Monet, etc. Limited investor spots are available — request membership today.
Explore Stock and Fund Rankings
Top China Region Exchange-Traded Funds
Invesco Golden Dragon China ETF PGJ
$195.5M
-20.26%
WisdomTree China ex-State-Owd Entpr ETF CXSE
$142.6M
-9.73%
SPDR® S&P China ETF GXC
$1.2B
-8.10%
iShares MSCI Hong Kong ETF EWH
$2.2B
9.21%
iShares MSCI China A ETF CNYA
$157.9M
7.74%
iShares MSCI China ETF MCHI
$4.3B
-8.33%
iShares MSCI Taiwan Capped ETF EWT
$3.0B
-0.04%
KraneShares Bosera MSCI China A ETF KBA
$710.8M
6.93%
Xtrackers Harvest CSI 300 China A ETF ASHR
$1.7B
7.19%
iShares China Large-Cap ETF FXI
$5.4B
0.14%
Data as of July 16th, 2019
Unsubscribe from this email list
Manage my email preferences | Privacy Policy
