In this article, we discuss 5 best Asian stocks to buy today. If you want to read about some more Asian stocks, go directly to 12 Best Asian Stocks To Buy Today.
5. Pinduoduo Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 41
Pinduoduo Inc. (NASDAQ:PDD) operates an e-commerce platform in the People’s Republic of China. It is one of the top Chinese stocks to invest in. The stock has gained in the past few weeks on the back of strong earnings and sales numbers that suggest that consumer strength is growing in the Asian country. The recovery in consumer sentiment in China is being attributed to the easing of COVID-19 lockdowns across the country. An upcoming shopping festival is set to boost this sentiment further.
On September 9, investment advisory Barclays maintained an Equal Weight rating on Pinduoduo Inc. (NASDAQ:PDD) stock and raised the price target to $66 from $45. Analyst Jiong Shao issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Pinduoduo Inc. (NASDAQ:PDD), with 6.1 million shares worth more than $380.8 million.
In its Q4 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Pinduoduo Inc. (NASDAQ:PDD) was one of them. Here is what the fund said:
“On the detracting side, one of our largest detractors includes Pinduoduo (ticker: PDD). Pinduoduo (PDD) reported the second consecutive GAAP profit quarter yet missed on the revenue due to nation-wide consumption weakness & scaled back Sales & Marketing efforts. Market disliked it and the stock price plunged on the earnings. In my opinion, the accounting profits proved the original thesis of using S&M to acquire users and using great shopping experience to keep them. After realizing the first growth curve, Pinduoduo now shifted its focus & investment to agriculture. It is still very early, but the reduced size due to price drop warrants a position to watch and continue to grow with such a team with a strong culture.”
4. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 45
Baidu, Inc. (NASDAQ:BIDU) offers internet search services in China. The firm is among the best Chinese stocks to invest in. On August 30, Baidu, Inc. (NASDAQ:BIDU) posted earnings for the second quarter of 2022, reporting a revenue of $4.43 billion, down over 5% compared to the revenue over the same period last year but beating market estimates by around $230 million. The firm said that the earnings per share in the second quarter were $2.36, beating estimates by $0.79.
On September 16, investment advisory UBS initiated coverage of Baidu, Inc. (NASDAQ:BIDU) stock with a Buy rating and a price target of HK$191.30. Analyst Wei Xiong issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Ariel Investment is a leading shareholder in Baidu, Inc. (NASDAQ:BIDU), with 2.6 million shares worth more than $393 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Baidu, Inc. (NASDAQ:BIDU) was one of them. Here is what the fund said:
“Baidu, Inc. (NASDAQ:BIDU), a leading Chinese artificial intelligence company, contributed to performance in the second quarter due to an improving outlook for its mobile ecosystem, continued market share gains in cloud computing, solid progress in autonomous vehicle development, and improving operational efficiency. We see significant upside for Baidu, given its strong competitive position across several of China’s key growth industries.”
3. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 62
JD.com, Inc. (NASDAQ:JD) provides supply chain-based technologies and services in China. The company is one of the most prominent Chinese stocks to invest in. Reports suggest that JD.com, Inc. (NASDAQ:JD) is on a list of Chinese firms that are set to be audited in the United States by independent auditors. The report comes merely days after the US and China reached an agreement regarding transparent auditing processes with regards to Chinese firms listed in the US.
On September 12, Susquehanna analyst Shyam Patil maintained a Neutral rating on JD.com, Inc. (NASDAQ:JD) stock and increased the price target to $62 from $55, noting that the second quarter earnings of the firm were solid despite macro headwinds.
At the end of the second quarter of 2022, 62 hedge funds in the database of Insider Monkey held stakes worth $5.5 billion in JD.com, Inc. (NASDAQ:JD), compared to 59 in the previous quarter worth $5.4 billion.
In its Q3 2021 investor letter, Argosy Investors, an asset management firm, highlighted a few stocks and JD.com, Inc. (NASDAQ:JD) was one of them. Here is what the fund said:
“We sold JD.com, Inc. (NASDAQ:JD) as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”
2. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 65
Sea Limited (NYSE:SE) engages in the digital entertainment, e-commerce, and digital financial businesses. In mid-May, the sovereign wealth fund of Saudi Arabia, one of the biggest investors in the world, acquired a large stake in the company. The fund bought close to 240,000 shares in the tech firm. The purchase came even as video game sales, one of the biggest sources of revenue for the firm, continued to fall. However, despite the falling sales, there are signs video game demand is stabilizing back to pre-pandemic levels.
On August 18, Barclays analyst Jiong Shao maintained an Overweight rating on Sea Limited (NYSE:SE) stock and lowered the price target to $114 from $125, noting that many macro factors had become more uncertain in recent months for the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management is a leading shareholder in Sea Limited (NYSE:SE), with 8.2 million shares worth more than $548 million.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Sea Limited (NYSE:SE) was one of them. Here is what the fund said:
“Sea Limited (NYSE:SE), a global digital gaming and e-commerce company, detracted from performance for the period held. Similar to other online consumer businesses, Sea faced significant multiple compression in the quarter, exacerbated by a slowdown in user growth at its key Free Fire digital game and mounting investments in its e-commerce operation, particularly in new markets like Brazil. We exited our position as we lost confidence in the long- term unit economics in some of Sea’s new markets and were concerned by the simultaneous slowdown in revenue growth and increase in underlying cash burn.”
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 106
Alibaba Group Holding Limited (NYSE:BABA), through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses. It is one of the premier Chinese stocks to invest in. On September 23, the company announced that it would be investing up to $1 billion over the next three years. Selina Yuan, the Alibaba Cloud Intelligence International President, said that revamped partner strategy prioritizes the growth of the partners.
On August 8, investment advisory Deutsche Bank maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock and raised the price target to $160 from $155. Analyst Leo Chiang issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE:BABA), with 14 million shares worth more than $1.6 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:
“Alibaba Group Holding Limited(NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third party online payment provider. Shares of Alibaba rose during the quarter, driven by an increasing focus on improving capital allocation, an improving regulatory environment, and government stimulus targeting Chinese consumers. We retain conviction that Alibaba will benefit from rapid growth in cloud services, logistics, and retail.”
You can also take a peek at 10 Best Healthcare Stocks to Buy According to Billionaire Larry Robbins and 10 Quality Stocks to Buy with Shares Down Over 30% YTD.
