10 Best Asian Stocks To Buy Now

6. Trip.com (NASDAQ:TCOM)

Upside Potential: 56.42%

Average Analyst Price Estimate: $65.93

Trip.com (NASDAQ:TCOM) is a Chinese online travel agency offering booking services for hotel reservations, transportation tickets, packaged tours, and corporate travel. The company is headquartered in Shanghai and has over 30,000 employees based in offices in 95 locations in China and 22 international branches.

In the financial year 2023, Trip.com’s (NASDAQ:TCOM) revenue increased by 122% to $6.3 billion compared to the previous year. The company not only recovered but also surpassed its revenue levels from before the pandemic, indicating strong growth. Trip.com’s (NASDAQ:TCOM) revenue achieved a remarkable 34% CAGR over the past three years.

Trip.com (NASDAQ:TCOM) benefits from China’s restrictive internet service regulations that pose barriers to international competitors. The company is already well-known in China and is improving its international operations, which are currently less profitable but have significant growth prospects. According to Mordor Intelligence, China’s tourism and hotel market was valued at $385.07 billion in 2024 and is expected to reach $504.22 billion by 2029, growing at a CAGR of 5.53%.

As the largest Chinese travel platform, Trip.com (NASDAQ:TCOM) benefits from extensive connections within the travel ecosystem, allowing it to acquire new outbound travelers with minimal incremental advertising costs, which supports margin growth. Trip.com’s (NASDAQ:TCOM) revenue is expected to grow by almost 5% in 2024 and is well-positioned to capitalize on the recovery of outbound travel, both through its Chinese and ASEAN region platforms.

Trip.com (NASDAQ:TCOM) is poised to maintain its dominance in China while expanding internationally. Trip.com (NASDAQ:TCOM) is cheaper than its industry peers, the stock is trading at 13.94 times this year’s earnings estimate, a 10% discount compared to the sector median of 15.53. Trip.com’s (NASDAQ:TCOM) stock is trading at $42.15 as of August 14. Analysts have a consensus on the stock’s Buy rating, setting a price target of $65.93 which reflects a 56.42% upside potential.