In this article, we will list the 5 Best Asian Stocks with Huge Upside Potential. Please visit 10 Best Asian Stocks with Huge Upside Potential if you would like to see the extended list and the methodology behind it.
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. (NYSE:ZTO) 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. (NYSE:ZTO) 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 (NASDAQ:FUTU) 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 (NASDAQ:FUTU) 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 (NASDAQ:FUTU) 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 (NASDAQ:GDS) 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 (NASDAQ:GDS) 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 (NASDAQ:GDS) 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 (NASDAQ:GDS) 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 (NYSE:VIPS) 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 (NYSE:VIPS) 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 (NYSE:VIPS) 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. (NASDAQ:PDD) 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. (NASDAQ:PDD) is a multinational commerce group that owns and operates a portfolio of businesses.
While we acknowledge the potential of PDD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PDD and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: 15 High Growth Stocks to Buy and Hold for the Next Decade and 12 Strong Buy Stocks to Buy and Hold for the Next 5 Years
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
Hedge Fund Resource Center