In this article, we will be taking a look at the 5 best ADR stocks to buy now. To read our detailed analysis of these stocks and investing in foreign companies, you can go directly to see the 10 Best ADR Stocks To Buy Now.
5. AstraZeneca plc (NYSE:AZN)
Number of Hedge Fund Holders: 47
AstraZeneca plc (NYSE:AZN) is a biopharmaceutical company working to develop prescription medicines. The company is based in Cambridge, UK. On August 26, AstraZeneca plc (NYSE:AZN) shares were upgraded to ‘Add’ from ‘Reduce’ by AlphaValue/Baader.
In the second quarter, AstraZeneca plc (NYSE:AZN) had revenue of $10.8 billion, up 31% year-over-year and beating estimates by $194 million. The company’s EPS is expected to grow by 14.7% over the next three-to-five years, and it has a one-year dividend growth rate of 3.6%.
Out of 895 hedge funds that filed 13Fs for the second quarter, 47 were long AstraZeneca plc (NYSE:AZN). Their total stake value was $4.9 billion.
Carillon Tower Advisers, an investment management firm, mentioned AstraZeneca plc (NYSE:AZN) in its first quarter 2022 investor letter. Here’s what it said:
“AstraZeneca (NYSE:AZN) performed strongly and reported encouraging fourth-quarter earnings and initial 2022 guidance. AstraZeneca also announced positive clinical data for two drugs within its oncology business that should serve as important long-term growth drivers.”
4. JD.Com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 62
JD.Com, Inc. (NASDAQ:JD) is a provider of supply chain-based technologies and services in China. The company provides computers, communication, and consumer electronic products, alongside home appliances and more.
A ‘Buy’ rating was reiterated on JD.Com, Inc. (NASDAQ:JD) shares on August 26 by Benchmark analyst Fawne Jiang. The analyst also raised the price target on the stock from $106 to $109.
This August, JD.Com, Inc. (NASDAQ:JD) shares gained in light of positive second-quarter earnings. The company’s $40 billion in revenue beat estimates by $1.4 billion, while its EPS of $0.59 also beat estimates by $0.20.
Our hedge fund data shows 62 hedge funds long JD.Com, Inc. (NASDAQ:JD) in the second quarter, compared to 59 hedge funds in the previous quarter. Their total stake values were $5.5 billion and $5.4 billion respectively.
3. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 65
Sea Limited (NYSE:SE) is a communication services company engaged in digital entertainment, e-commerce, and digital financial service businesses. It operates in Southeast Asia, Latin America, the rest of Asia, and internationally.
Jiong Shao, an analyst at Barclays, holds an ‘Overweight’ rating on Sea Limited (NYSE:SE) shares as of August 18. The analyst also has a $114 price target on the stock.
The company’s EPS for the second quarter came in at a loss of $1.03, beating estimates by $0.03. Its revenue of $2.94 billion was up 29% year-over-year and also beat the previous quarter’s revenue of $2.9 billion.
There were 65 hedge funds long Sea Limited (NYSE:SE) in the second quarter, with a total stake value of $2.7 billion.
2. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 72
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is an information technology company. It manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the U.S., and internationally.
Roland Shu at Citigroup reiterated a ‘Buy’ rating on Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares on July 12.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)’s EPS was $1.55 in the second quarter, beating estimates by $0.04. The company’s revenue was $17.8 billion, up 33.9% year-over-year and also beating estimates by $327 million. The company’s EPS is expected to grow by 24.2% over the next three-to-five years, and the stock has a one-year dividend growth rate of 4.8%.
In the second quarter, 72 hedge funds held stakes in Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), with a total stake value of $9.2 billion. In comparison, 81 hedge funds were long the stock in the previous quarter, with a total stake value of $10.2 billion.
The Mercator International Opportunity fund, an investment management company, mentioned Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its second quarter 2022 investor letter. Here’s what the fund said:
“Another example of this buyers’ strike is Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) (1.81%), down 40% from its high and trading at less than 15 times forward earnings. When TSM announced better-than-expected earnings growth of 67% in the second quarter with no slowdown in sight, the stock barely gained a few percentage points. No matter how good the news, buyers are not showing up. Yet.”
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 106
Alibaba Group Holding Limited (NYSE:BABA) offers technology infrastructure and marketing reach to aid merchants, brands, retailers, and other businesses. The company is based in Hangzhou, China.
A ‘Buy’ rating was kept on Alibaba Group Holding Limited (NYSE:BABA) shares on August 8 by analyst Leo Chiang at Deutsche Bank. Chiang also raised the price target on the stock from $155 to $160.
In the first quarter of its fiscal 2023, Alibaba Group Holding Limited (NYSE:BABA) delivered EPS of $1.70, beating estimates by $0.19. The company’s revenue was $30.5 billion, also beating estimates by $296 million.
Alibaba Group Holding Limited (NYSE:BABA) was held by 106 hedge funds in the second quarter, who owned $7.4 billion of the company’s shares.
Artisan Partners, an investment management firm, mentioned Alibaba Group Holding Limited (NYSE:BABA) in its second quarter 2022 investor letter. Here’s what the firm said:
“Alibaba rose 4% during the quarter. We would love to say the share price performance was due to strong operational performance. Unfortunately, that was not the case. The most recent earnings results showed its core e-business still had not returned to growth, primarily due to the difficult retail environment caused by the government’s zero-COVID policy. Alibaba also appears to be losing market share due to its product mix tilted toward apparel and cosmetics, categories currently stalled in this environment. The share price performance this quarter was largely a function of exogenous items—specifically, government actions in the form of stimulus to support the economy and less regulations.
Despite the poor recent results, Alibaba remains a powerful economic engine. It is a global leader in e-commerce and cloud computing, both of which should grow nicely over time. Management has started taking actions to improve profitability, which has been burdened by significant investment in loss-making business ventures. The financial results should improve significantly when China’s economy starts to recover from COVID-19 outbreaks. The shares are incredibly cheap and have some of the highest upside potential in the portfolio. Even embedding significant losses from new ventures, we estimate they are trading at 11X-12X unlevered earnings. In our view, the shares could double, and they still would not be expensive.”
See also the 50 Most Beautiful Cities in the US and the 12 Best Infrastructure Stocks To Buy Now.
