Why KE Holdings Inc. (BEKE) Soared on Wednesday

We recently compiled a list of the 10 Stocks Outperform Wall Street Indices on Wednesday. In this article, we are going to take a look at where KE Holdings Inc. (NYSE:BEKE) stands against the other stocks.

The stock market ended on a mixed note on Wednesday, with the Dow Jones the sole loser during the session, as investor caution persisted amid confusing tariff policies from President Donald Trump.

The Dow Jones dropped by 0.43 percent, while in contrast, the S&P and Nasdaq finished in the green territory, albeit the S&P inched up by only 0.01 percent, and the Nasdaq ended higher by 0.26 percent.

On Wednesday, Trump raised hopes for another month of delay for the imposition of tariffs on goods from Mexico and Canada, while signaling a 25-percent reciprocal tariff on European cars and goods.

Meanwhile, ten companies defied the broader market pessimism, posting modest to strong gains during the day.

To come up with Wednesday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

Aerial shot of a modern real estate development with residential homes.

KE Holdings Inc. (NYSE:BEKE)

Shares of KE Holdings Inc. (NYSE:BEKE) rallied for a second day on Wednesday, adding 7.62 percent to finish at $22.87 apiece as investors gobbled up shares in the company following bullish analyst outlooks.

Just recently, KE Holdings Inc. (NYSE:BEKE) earned a ‘strong buy’ rating and a price target of $22.1 from HSBC Global Research, saying that there are 10 signs that the Chinese real estate market has already bottomed out, making Chinese real estate stocks more attractive.

According to the report, signs include year-on-year growth in new home sales, recovery in housing prices, price expectations reset, a surge in land sales, and foreign investment participation.

It also said that the market experienced continued housing completions, easier access to credit for developers, higher household risk appetite, gradual clearing of real estate inventory, and rental yields becoming more attractive compared to government bond yields.

KE Holdings Inc. (NYSE:BEKE) is an integrated online and offline platform for housing transactions and services in China. It operates Lianjia, China’s leading real estate brokerage brand.

Overall BEKE ranks 6th on our list of Wednesday’s top gainers. While we acknowledge the potential of BEKE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as BEKE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.