5 Rebounding Chinese Stocks to Buy Now

1. JD.com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 62

Share Price Gain in the Last Month as of August 30: 4.74%

JD.com, Inc. (NASDAQ:JD) is a Beijing-based company that offers computers, consumer electronics, home appliances, and general merchandise products through online retail channels. In Q2 2022, the company earned an adjusted 61 cents per share on $40 billion in revenue, up 5.4% year-over-year. The company added almost 50 million customer accounts in the past 12 months. JD.com, Inc. (NASDAQ:JD) stock has gained about 5% in the last month as of August 30. 

Benchmark analyst Fawne Jiang on August 24 raised the price target on JD.com, Inc. (NASDAQ:JD) to $109 from $106 and kept a Buy rating on the shares. JD.com, Inc. (NASDAQ:JD) reported above consensus Q2 results, featuring a solid bottom-line beat and a Q3 retail growth guidance slightly under expectations due to ongoing macro headwinds, the analyst told investors. Compared with its peers, the analyst believes the drivers for JD.com, Inc. (NASDAQ:JD)’s margin improvements are sustainable.

According to the second quarter database of Insider Monkey, 62 hedge funds were bullish on JD.com, Inc. (NASDAQ:JD), up from 59 funds in the prior quarter. Chase Coleman’s Tiger Global Management is the largest stakeholder of the company, with 30.5 million shares worth about $2 billion. 

Here is what Argosy Investors has to say about JD.com, Inc. (NASDAQ:JD) in its Q3 2021 investor letter:

“We sold JD as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”

You can also take a look at Best Value Stocks to Buy for the Next Decade and Best Cheap Tech Stocks. 

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