10 Best Chinese Stocks to Buy Right Now

7. JD.com (NASDAQ:JD)

Hedge Funds Holding Stakes: 59

Stock Upside Potential: 49.60%

JD.com (NASDAQ:JD) is a supply chain-based technology and services provider that offers computer communication and consumer electronics products. The company also generates significant revenues by operating online marketplace services for third-party merchants.

JD.com (NASDAQ:JD)’s core business has been growing steadily, underlining why JD is one of the best Chinese stocks to buy now. In the second quarter, revenues were up 1.2% to $40.1 billion, and the net income attributable to shareholders was more than doubled to $1.7 billion. Free cash flow also increased by 66.2% to $7.7 billion.

While slowing the Chinese economy remains a significant headwind for JD.com (NASDAQ:JD)’s long-term prospects, DBS Bank’s Sachem Mittal said in a research report that the company has made impressive strides to offset the challenges. For starters, it has made efforts to diversify into other fields, including groceries and healthcare, as one of the ways of bolstering future earnings.

While JD.com (NASDAQ:JD) is down by about 10% for the year, analysts on Wall Street remain upbeat about its long-term prospects, going by the consensus buy rating and an average price target of $40.62, implying a 49.60% upside potential from current levels. Additionally, a total of 59 hedge funds held stakes in JD.com (NASDAQ:JD) as of the end of the first quarter, according to the Insider Monkey database.

Here is what Ariel Investments‘ Ariel Global Fund said about 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.”