Top 10 ADR Stocks To Buy According to Hedge Funds

6. H World Group (NASDAQ:HTHT)

Number of Hedge Fund Holders: 24

Stock Upside Potential: 63.70%

H World Group (NASDAQ:HTHT) is one of the top ADR stocks and a key player in China’s hospitality industry. The company develops leased and owned franchised hotels and generates management fees and franchise fees. It operates through three primary strategies: leasing and owning properties and franchising and managing hotels.

The diversified strategy helps H World Group (NASDAQ:HTHT) sustain a strong hospitality sector foothold while offering substantial growth opportunities through efficient risk management and financial investment.

By blending these strategies, the company can maximize income sources, boost brand awareness, and expand its market share with a lower upfront cost than conventional hotel ownership. As of the end of the first quarter, it managed a network of 9,817 hotels, encompassing 955,657 rooms across 18 nations.

H World Group (NASDAQ:HTHT) remains at the forefront of focusing on its customers and constantly enhancing the excellence of its offerings. During the first six months of 2024, the company saw its earnings climb to $1.6 billion, marking a 14.1% rise from the same period in 2023. Earnings were up 14.3% to RMB 9.1 billion.

Analysts on Wall Street rate H World Group (NASDAQ:HTHT) as a Buy with an average price target of $47.67, suggesting a 63.70% upside potential from current levels. Additionally, the stock rewards investors with a 2.19% dividend yield. The number of hedge funds holding stakes in the company dropped to 24 in Q2 2024 from 34 as of the end of Q1 2024.