In this article, we discuss the 5 best ADR stocks to buy In 2021. If you want to read our detailed analysis of these stocks, go directly to the 10 Best ADR Stocks to Buy in 2021.
5. JD.com, Inc. (NASDAQ: JD)
Number of Hedge Fund Holders: 75
JD.com, Inc. (NASDAQ: JD) is a China-based ecommerce firm. It was founded in 1998 and is ranked fifth on our list of 10 best ADR stocks to buy In 2021. The company’s shares have returned more than 20% to investors over the course of the past twelve months. The company operates close to 900 warehouses across the world to aid the online marketplace. The firm owns the largest ecommerce platform in China in terms of revenue. The company registered a massive boom in sales numbers during the coronavirus lockdowns last year.
On May 28, JD.com, Inc. (NASDAQ: JD) launched JD Logistics in Hong Kong. JD Logistics had earlier raised $3.1 billion in the second-largest initial public offering in Hong Kong this year, finishing the first day of trading with an intraday high of 18%.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management LLC is a leading shareholder in JD.com, Inc. (NASDAQ: JD) with 51.6 million shares worth more than $4.3 billion.
In its Q1 2021 investor letter, Arisaig Partners, an asset management firm, highlighted a few stocks and JD.com, Inc. (NASDAQ: JD) was one of them. Here is what the fund said:
“Our largest holding as a firm, JD.com, we expect to grow earnings at an annualised rate of 30% over the next five years, implying it will trade on an EV / EBITDA of 7.5x at the end of this period. Is this a growth stock or a value stock? Does anyone care? Do these labels really matter?
For the Asia Fund, with a higher pre-existing allocation to our core FMCG holdings coming into the year, we took advantage of capital market volatility to further concentrate on our highest conviction names. JD.com has been the main destination for our limited reallocations as evidence continues to emerge supporting our thesis that the company has a strong right-to-win in the large and highly fragmented USD1.8th Chinese grocery market. We have also been encouraged by the fact that after years of persistence, the company is beginning to engage with us on ESG issues (we have specifically discussed data protection, climate change and the circular economy). ESG is now being considered at the board level, and specific sustainability reporting should follow in the coming months. Having long displayed a healthy obsession with customer service, we interpret these latest conversations as a sign that JD is beginning to develop a more sophisticated understanding of its impact on all stakeholders.”
