In this article, we discuss 5 best Asian stocks to buy heading into 2023. If you want to see more stocks in this selection, check out 12 Best Asian Stocks To Buy Heading Into 2023.
5. Trip.com Group Limited (NASDAQ:TCOM)
Number of Hedge Fund Holders: 42
Trip.com Group Limited (NASDAQ:TCOM) is a Shanghai-based company that operates as a travel service provider for accommodation, transportation ticketing, packaged tours, corporate travel management, and other travel-related services in China and internationally. Trip.com Group Limited (NASDAQ:TCOM) is one of the best Chinese stocks to monitor.
Barclays analyst Jiong Shao on October 28 maintained an Overweight rating on Trip.com Group Limited (NASDAQ:TCOM) but slashed the price target on the stock to $30 from $35. The analyst refreshed estimates and 12-month price targets for all the Chinese tech and internet companies under coverage heading into year-end 2022.
According to Insider Monkey’s data, 42 hedge funds were long Trip.com Group Limited (NASDAQ:TCOM) at the end of the third quarter of 2022, compared to 34 funds in the last quarter. Richard S. Pzena’s Pzena Investment Management is the largest position holder in the company, with a stake worth $278 million.
Here is what Artisan Partners specifically said about Trip.com Group Limited (NASDAQ:TCOM) in its Q2 2022 investor letter:
“Trip.com Group Limited (NASDAQ:TCOM) is China’s leading online travel agent or OTA. Prior to the pandemic, Trip.com was a profitable business with a large competitive advantage built around its position in both inbound and outbound international travel. That advantage was based on considerable investment in support centers, a large sales force outside of China focused on hotel supply agreements, partnerships with Chinese language tour providers, and other services to support the Chinese traveler. Trip.com was a healthy and growing business—the number of Chinese outbound tourists grew to 155 million (larger than the population of Japan) in 2019 from just 57 million in 2010. As it did with so many travel entities, the pandemic upended the business, and Chinese outbound tourists in 2021 fell to just under 26 million, devastating the company’s profits and the share price, which fell from the high 30s to the low 20s.
Generally speaking, OTAs are great businesses. Effectively, these companies take a commission for booking travel for providers. In addition, an OTAs app attracts advertising revenue from airlines, hotels, and other tourist destinations. Trip.com’s appeal is enhanced by a management team thoughtful enough to operate with significant net cash on the balance sheet.”
