10 Best Asian Stocks To Buy Now

5. JD.com (NASDAQ:JD)

Upside Potential: 57.06%

Average Analyst Price Estimate: $41.04

JD.com (NASDAQ:JD) is a Chinese e-commerce company specializing in the retail of consumer electronics, apparel, and household products. The company also operates in logistics, marketing services, property classifieds along with other technology initiatives.

JD.com (NASDAQ:JD) is recognized for its high-quality online shopping experience. However, the company’s stock price declined by almost 7% year to date, due to a challenging economic environment, leading consumers to prioritize bargain hunting. In response, the company invested in improving its third-party merchant platform to expand its product variety and enhance price competitiveness. Which will lead to a better product mix, stronger revenue growth, and improved profit margins in the future. Ariel Investments‘ Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its first quarter 2024 investor letter:

“We initiated a position in China-based technology-driven E-commerce company, JD.com, Inc. (NASDAQ:JD). The brand has long been known across the region as a superior online shopping channel due to its unique first-party model and unparalleled fulfillment service underpinned by JD Logistics. Yet, a challenging macro environment drove shares lower as shoppers began seeking bargains. In response, the company made significant investments in elevating its third-party merchant platform to enhance its variety of product offerings and price competitiveness for consumers. We believe these actions will yield an improved product mix, stronger top-line growth and margin expansion on a go-forward basis.”

JD.com (NASDAQ:JD) is cheaper than its industry peers, the stock is trading at 7.44 times this year’s earnings estimate, a 52% discount to its sector. Analysts expect earnings to grow by 9.20% this year, which presents a compelling opportunity for long-term investors. The stock is currently trading at $26.13. Analysts have given it a Buy rating, with an average price target of $41.04, implying a 57.06% upside potential.