10 Best Asian Stocks To Buy Now

1. Li Auto (NASDAQ:LI)

Upside Potential: 71.89%

Average Analyst Price Estimate: $33.33

Li Auto (NASDAQ:LI) is an electric vehicle manufacturer based in Beijing, China. Founded in 2015, the company has quickly established itself as a dominant player in China’s electric vehicle market, focusing on the premium segment with family-oriented SUVs.

In 2023, Li Auto (NASDAQ:LI) reported that its revenue increased by 173.5% year-over-year to $17.44 billion, whereas its net profit saw a substantial rise of 212.8% year-over-year, reaching $3.87 billion. The company delivered 376,030 cars, up 182.2% compared to the previous year.

Li Auto (NASDAQ:LI) has a 9% return on assets (ROA) which is notably high for car manufacturers. Additionally, the company has $13.70 billion in cash and has a debt of $2.12 billion. With this large reserve of cash, Li Auto (NASDAQ:LI) has the flexibility to invest in growth opportunities, such as expanding production capacity, investing in new technologies, or entering new markets, without the need to rely heavily on debt or external financing.

According to Fortune Business Insights, the global EV market was valued at $671.47 billion in 2024 and is expected to grow to $1.8 trillion by 2032 exhibiting a CAGR of 13.8%. The Asia–Pacific region dominated the electric vehicles market with a share of 51.24% in 2023 with China holding the largest share in the electric vehicle industry.

Li Auto’s (NASDAQ:LI) strong financial performance, premium product offerings, efficient capital allocation, and robust cash reserves make it well-positioned to continue its rapid growth and deliver substantial returns to investors over the long term. The stock is trading at $19.39 as of August 14. Industry analysts have a consensus on the stock’s Buy rating with an average price target of $33.33, which represents a 71.89% upside potential from its current level.

While we acknowledge the potential of Li Auto (NASDAQ:LI) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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