In this article, we will look at the 10 Best Asian Stocks with Huge Upside Potential.
Asian stocks are getting more attention as investors look beyond the U.S. mega-cap trade and toward markets with different earnings drivers. The region is not one simple bet, with each country and each segment having completely different demand drivers.
AllianceBernstein says “Asian equities offer hidden value” and argues that the region’s earnings recovery is “not yet fully reflected in valuations.” The firm also notes “strong earnings-growth potential of 52.3% for 2026,” with Asia ex Japan trading at a “32% discount to the MSCI World index.” PineBridge adds that “Asian equities look set to benefit” from improving sentiment and a better macro backdrop, while “AI infrastructure spending, electric vehicles (EVs), robotics, and semiconductor demand” are helping support Asia’s supply chains. Manulife Investment Management says Asian markets’ “earnings and valuations remain supportive,” and notes an inflection point in earnings estimates driven by Korea, Taiwan, and Hong Kong on the back of technology strength. In summary, the upside case is not just about cheap valuations. It is also about earnings recovery, AI supply chains, and country-specific growth drivers that are starting to matter again.
Against this backdrop, Asian stocks with huge upside potential deserve a closer look. With that in mind, let’s take a look at the 10 Best Asian Stocks with Huge Upside Potential.
Our Methodology
We used the Finviz screener to identify Asian stocks that offer an upside of at least 30% based on analysts’ median price target. We then limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. JD.com, Inc. (NASDAQ:JD)
On May 29, 2026, JD.com, Inc. (NASDAQ:JD) founder Liu Qiangdong pledged to prioritize protecting the company’s roughly 900,000 employees from AI-driven automation, Bloomberg reported. Liu said in an internal speech that JD.com will “do everything possible to safeguard employment for hundreds of thousands of staff, including blue-collar workers.” Liu also said JD.com “will not fire a single front-line worker replaced by machines.”
On May 14, 2026, BofA raised the firm’s price target on JD.com, Inc. to $37 from $35 and maintained a Buy rating on the shares after the company reported “strong” Q1 results. BofA cited broad-based momentum in JD Retail and said it has “high confidence” in double-digit earnings growth.
Barclays also raised the firm’s price target on JD.com, Inc. to $43 from $41 and maintained an Overweight rating, saying Q1 results were “robust” across all major segments.
On May 12, 2026, JD.com, Inc. reported Q1 revenue of $45.8B, up from $41.5B last year. CEO Sandy Xu said JD.com delivered a “solid first quarter,” with its user base and shopping frequency expanding robustly. Xu also said annual active customers reached a new record, JD Retail’s profitability reached record levels, and New Businesses posted meaningful bottom-line improvements from the prior quarter.
JD.com, Inc. operates as a supply chain-based technology and service provider in the People’s Republic of China and Europe.
9. KE Holdings Inc. (NYSE:BEKE)
On May 20, 2026, Barclays raised the firm’s price target on KE Holdings Inc. (NYSE:BEKE) to $26 from $23 and maintained an Overweight rating on the shares. Barclays updated the company’s model following the Q1 report.
BofA also raised the firm’s price target on KE Holdings Inc. to $23 from $21 and maintained a Buy rating on the shares. BofA cited a higher earnings outlook following the company’s Q1 profit beat.
On May 19, 2026, KE Holdings Inc. reported Q1 adjusted EPS of RMB1.42, ahead of the consensus estimate of RMB0.91. Adjusted EPS was 20c. Revenue totaled RMB18.9B, or $2.74B, above the consensus estimate of RMB18.55B. CEO Stanley Yongdong Peng said the company saw “positive marginal changes” in the real estate market and continued to improve operating quality and profitability. CFO Tao Xu said gross margin and adjusted operating margin reached their highest levels in the past seven quarters, while KE Holdings repurchased approximately $195M of shares during the quarter.
KE Holdings Inc. operates an integrated online and offline platform for housing transactions and services in the People’s Republic of China.
8. Yum China Holdings, Inc. (NYSE:YUMC)
On May 22, 2026, Yum China Holdings, Inc. (NYSE:YUMC) announced that KFC’s light-meal concept, KPRO, surpassed 300 locations in China and is on track to reach 600 locations by year-end. Yum China had raised its 2026 expansion target for KPRO in April from 400 locations to 600, focusing on tier-1, tier-2, and select tier-3 cities, particularly in eastern and southern China, where demand for light meals is stronger.
On May 12, 2026, Yum China Holdings, Inc. announced share repurchase agreements in the U.S. and Hong Kong for an aggregate repurchase amount of approximately $512M for the second half of 2026, beginning July 1. The agreements include approximately $384M under Rule 10b5-1 in the U.S. and approximately HK$1B under a similar program in Hong Kong.
Last month, Yum China Holdings, Inc. reported Q1 adjusted EPS of 87c, ahead of the consensus estimate of 85c. Revenue totaled $3.3B, above the consensus estimate of $3.23B. Same-store sales reached 100% of the prior-year level, while same-store transactions grew 2% year-over-year. CEO Joey Wat said Yum China delivered “solid results” in a dynamic environment and cited early signs of improving consumer sentiment, record store openings, system sales growth, operating profit growth, and OP margin expansion.
Yum China Holdings, Inc. owns, operates, and franchises restaurants in the People’s Republic of China.
7. XPeng Inc. (NYSE:XPEV)
On May 28, 2026, Macquarie analyst Eugene Hsiao upgraded XPeng Inc. (NYSE:XPEV) to Outperform from Neutral with an unchanged $19 price target after the company’s Q1 results. Hsiao cited XPeng’s margin-driven beat, including over 2 billion yuan in other revenue supported by VW technical services. Macquarie also noted that volume momentum is improving and said the shares now have more than 10% upside.
Also on May 28, BofA raised the firm’s price target on XPeng Inc. to $25 from $24 and maintained a Buy rating on the shares. BofA said XPeng’s Q1 results highlighted rapidly growing overseas sales, which accounted for 20% of revenue during the quarter. The firm also noted management’s target of more than 10,000 monthly overseas unit sales by Q4 and over 100% annual growth, while pointing to higher international profitability and emerging businesses such as robotaxis and humanoid robots.
Earlier that day, XPeng Inc. reported Q1 revenue of $1.89B, compared to $2.18B last year. Total vehicle deliveries were 62,682 for the quarter. Chairman and CEO Xiaopeng He said the company will deliver four new models this year, following the launch of the GX, and is focused on mass production of Robotaxis and humanoid robots. XPeng also expects Q2 deliveries of 100,000-106,000 vehicles. Vice Chairman and Co-President Hongdi Brian Gu said gross margin surpassed 20% in Q1, supported by in-house technology innovation and rising international revenue.
XPeng Inc. designs, develops, manufactures, and markets smart electric vehicles in the People’s Republic of China.
6. Pony AI Inc. (NASDAQ:PONY)
On May 26, 2026, Macquarie analyst Eugene Hsiao lowered the firm’s price target on Pony AI Inc. (NASDAQ:PONY) to $24 from $25 and maintained an Outperform rating on the shares. Hsiao said the company’s Q1 revenue beat Macquarie’s estimate and Bloomberg consensus by roughly 60%, supported by 400% robotaxi service revenue growth and strong domain controller product sales for logistics vehicles. Macquarie raised its 2026 robotaxi fleet forecast, though the lower price target reflected higher operating expenses.
Also on May 26, Pony AI Inc. reported Q1 adjusted EPS of (9c), compared to (8c) last year. Revenue totaled $34.3M, up from $14M last year. Chairman and CEO James Peng said robotaxi fare-charging revenue increased more than five-fold year-over-year, supported by fleet scale, technology, operations, and user experience. Pony AI Inc. said it now expects to end 2026 with a robotaxi fleet exceeding 3,500 vehicles deployed in more than 20 cities worldwide. The company also expects robotaxi revenue to reach more than 3.5 times the amount recorded in 2025.
Pony AI Inc. operates in the autonomous mobility business in the People’s Republic of China and internationally.
5. ZTO Express (Cayman) Inc. (NYSE:ZTO)
On May 20, 2026, Morgan Stanley raised the firm’s price target on ZTO Express (Cayman) Inc. (NYSE:ZTO) to $30.10 from $28.50 and maintained an Overweight rating on the shares. Morgan Stanley said it was raising forecasts for the third time in six months following the company’s Q1 results, citing market share gains and better unit profitability as factors that could support ZTO’s re-rating despite slower industry volume growth and rising fuel costs.
Meanwhile, BofA lowered the firm’s price target on ZTO Express (ZTO) to $25.60 from $27 and maintained a Neutral rating on the shares. BofA said the lower target multiple reflects a “new overhang” tied to a potential stake sale by Alibaba (BABA) following the termination of the 2018 investor agreement among ZTO, its founders, and Alibaba. The firm said ZTO has not yet provided guidance on how the potential stake disposal will be carried out, while noting that an “undemanding valuation” and expected share buybacks may support the shares.
On May 19, 2026, ZTO Express (Cayman) Inc. reported Q1 adjusted EPS of RMB2.95, compared to the consensus estimate of RMB3.07. Revenue totaled RMB13.282B, above the consensus estimate of RMB12.8B. Founder, Chairman, and CEO Meisong Lai said ZTO remained focused on service quality, customer satisfaction, operating cost efficiencies, and network pricing policy fairness and transparency. Lai also said parcel volume reached 9.7B, up 13.2%, or 7.4 points above the industry average, mainly due to strong key account growth.
ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People’s Republic of China.
4. Futu Holdings Limited (NASDAQ:FUTU)
On May 29, 2026, BofA lowered the firm’s price target on Futu Holdings Limited (NASDAQ:FUTU) to $180 from $223.50 and maintained a Buy rating on the shares. BofA cut its FY26-28 EPS estimates by 6%-14% to reflect recent regulatory tightening and lowered its target multiple due to uncertainty around the market and competitive environment.
On May 28, 2026, Jefferies analyst Zoey Zong lowered the firm’s price target on Futu Holdings Limited to $170.50 from $224 and maintained a Buy rating on the shares after the company reported Q1 results. Zong said Futu’s buyback reflects long-term confidence.
Also on May 28, Futu Holdings Limited reported Q1 EPS of 77c, compared to $1.96 last year. Revenue totaled $746.9M, up from $603.4M last year. Total users increased 14.9% year-over-year to 30.2M as of March 31. Chairman and CEO Leaf Hua Li said Futu added 225 thousand net new funded accounts in the quarter, bringing total funded accounts to 3.6 million, up 34.3% year-over-year.
Futu Holdings Limited provides digitalized securities brokerage and wealth management product distribution services in Hong Kong and internationally.
3. GDS Holdings Limited (NASDAQ:GDS)
On May 21, 2026, TD Cowen lowered the firm’s price target on GDS Holdings Limited (NASDAQ:GDS) to $36 from $37 previously and maintained a Buy rating on the shares. TD Cowen said that it sees upside to the company’s 2026 bookings target of more than 500MW, with 340MW signed year-to-date. The firm also continues to view 2026 as an investment year that positions GDS Holdings Limited for stronger revenue and EBITDA growth in the second half of 2027 and beyond as AI hyperscale demand accelerates across China.
On May 20, 2026, GDS Holdings Limited reported first quarter EPS of $1.53, compared to 48c last year. Revenue totaled $488.07M, up from $375.26M last year. Chairman and Chief Executive Officer William Huang said that GDS Holdings Limited started 2026 with “very strong sales,” recording around 200MW of net new bookings during the first quarter, its highest level ever for a single quarter.
GDS Holdings Limited develops and operates data centers in the People’s Republic of China.
2. Vipshop Holdings Limited (NYSE:VIPS)
On May 23, 2026, UBS upgraded Vipshop Holdings Limited (NYSE:VIPS) to Buy from Neutral with a price target of $18.50, down from $20. UBS said Vipshop’s growth will remain under pressure in the near term due to “muted” consumption and “intense” e-commerce competition. Still, the firm cited the company’s “attractive” earnings quality and shareholder returns for the upgrade, while noting potential catalysts in the second half of 2026 from faster share buybacks, improving consumption trends, and asset monetization.
On May 21, 2026, Vipshop Holdings Limited reported Q1 EPS of $3.25, compared to $2.57 last year. Revenue totaled $3.85B, up from $3.62B last year. Total orders increased 3.2% during the quarter. Chairman and CEO Eric Shen said the results were driven by strong apparel sales and a successful Chinese New Year holiday, while SVIP customers delivered solid growth in both number and contribution.
Vipshop Holdings Limited expects Q2 total net revenue of RMB24.5 billion to RMB25.8 billion, representing a year-over-year decrease of approximately 5% to 0%.
Vipshop Holdings Limited operates online platforms in the People’s Republic of China through Vip.com, Shan Shan Outlets, and other segments.
1. PDD Holdings Inc. (NASDAQ:PDD)
On May 28, 2026, Benchmark analyst Fawne Jiang lowered the firm’s price target on PDD Holdings Inc. (NASDAQ:PDD) to $127 from $160 and maintained a Buy rating on the shares after the company reported “disappointing” Q1 results. Jiang said monetization appears to be taking a backseat in the near term as PDD prioritizes ecosystem health. Benchmark expects the stock to remain in the “penalty box” until investors get better visibility into earnings normalization, though Jiang added that valuation has “become increasingly compelling.”
Citi analyst Alicia Yap also lowered the firm’s price target on PDD Holdings Inc. to $123 from $142 and maintained a Buy rating on the shares. Yap said the Q1 revenue miss reflected ongoing merchant subsidies and increased investments in supply chain and first-party brand initiatives. Citi agreed with PDD’s investment direction and said the investments could strengthen product quality for domestic consumers and Temu’s overseas consumers.
On May 27, 2026, PDD Holdings Inc. reported Q1 non-GAAP EPS of RMB9.51, below the consensus estimate of RMB16.37. Revenue totaled RMB106.2B, below the consensus estimate of RMB109.4B. Co-CEO Lei Chen said the quarter marked the start of “deep transformations” across the business, internal processes, and organization. Co-CEO Jiazhen Zhao said supply chain investments will be the company’s core strategic priority, while VP of Finance Jun Liu said PDD is investing “resolutely” in supply chain capabilities.
PDD Holdings Inc. is a multinational commerce group that owns and operates a portfolio of businesses.
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