10 Biggest Stocks with Negative Beta to Consider

3. KE Holdings (NYSE:BEKE)  

Number of Hedge Fund Investors: 43  

Beta: -0.72  

Market Cap as of October 13: $26.31 Billion  

KE Holdings (NYSE:BEKE) operates an integrated platform that combines online and offline services for housing transactions. The company runs Beike, its flagship platform for housing services, and Lianjia, a well-known real estate brokerage brand. Additionally, the company owns the Deyou brand, which connects brokerage stores, with other brands.

KE Holdings (NYSE:BEKE) manages 8,000 offices across China and oversees more than 500,000 rental apartments. Despite a significant downturn in the real estate market, the company has expanded its market share in both new and existing home sectors. This achievement is largely attributed to its Agent Cooperation Network (ACN), which standardizes transactions and fosters agent collaboration, along with the trusted Lianjia brand, recognized for its reliable property listings.

In Q2, KE Holdings (NYSE:BEKE) reported adjusted earnings per share of $2.28, which significantly exceeded the market’s average estimate of $1.60. Revenue grew by 19.9% year-over-year, reaching $3.2 billion, surpassing the market’s forecast of $3.12 billion.

KE Holdings (NYSE:BEKE)’s strong performance was driven by growth in its existing home transaction services, as well as its home renovation and rental divisions. Revenue from existing home transactions increased by 14.3% year-over-year to $1.0 billion, while revenue from home renovation and furnishing services surged by 53.9% to $0.6 billion.

Trading at a price-to-earnings ratio of 22.28 the company is significantly undervalued with a discount of 40.61% compared to the sector median of 37.52. KE Holdings (NYSE:BEKE) is considered one of the top Chinese stocks to invest in for exposure to China’s real estate market.