In this article, we will take a look at the 5 best emerging markets stocks to buy according to analysts. To read our analysis of the recent trends and market activity, you can go to the 12 Best Emerging Markets Stocks to Buy According to Analysts.
5. NIO Inc. (NYSE:NIO)
Average Analyst Price Target as of February 27: $9.86
Upside Potential as of February 27: 70.59%
Number of Hedge Fund Holders: 20
NIO Inc. (NYSE:NIO), based in Shanghai, China, is a leading company in the premium smart electric vehicle market. Founded in 2014, the company designs, develops, jointly manufactures, and sells premium smart electric vehicles with advanced capabilities in autonomous driving, digital technologies, electric powertrains, and batteries.
On December 18, NIO Inc. (NYSE:NIO) announced that it has entered into a share subscription agreement with CYVN Holdings, a specialist investment vehicle based in Abu Dhabi. CYVN will invest $2.2 billion in cash to acquire 294 million newly issued Class A shares of the company.
Combined with the $738 million strategic equity investment in July 2023 and the acquisition of an additional $350 million worth of its shares from Tencent Holdings Ltd., CYVN will own nearly 20.1% stake in NIO Inc. (NYSE:NIO) after the closing of the transactions.
4. KE Holdings Inc (NYSE:BEKE)
Average Analyst Price Target as of February 27: $24.44
Upside Potential as of February 27: 73.21%
Number of Hedge Fund Holders: 39
Beijing, China-based KE Holdings Inc (NYSE:BEKE) operates Beike, a leading integrated online and offline platform for housing transactions and services. It allows service providers and customers to efficiently navigate and complete housing transactions and services in China, ranging from existing and new home sales, home rentals, to home renovation and furnishing, and other services.
KE Holdings Inc (NYSE:BEKE) established a share repurchase program in August 2022 which was later upsized in August 2023 and authorized the company to repurchase $2 billion of its shares. During September 2022 to September 2023, the company repurchased $737 million worth of its shares.
As of Q4 2023, KE Holdings Inc (NYSE:BEKE) shares were owned by 39 hedge funds with a total value of $1.7 billion, the second highest on our list of 12 best emerging markets stocks to buy according to analysts. Lei Zhang’s Hillhouse Capital Management was the largest hedge fund shareholder with ownership of 29.2 million shares valued at $474 million.
3. HUTCHMED (China) Limited (NASDAQ:HCM)
Average Analyst Price Target as of February 27: $28.08
Upside Potential as of February 27: 75.61%
Number of Hedge Fund Holders: 7
HUTCHMED (China) Limited (NASDAQ:HCM) is a commercial-stage biopharmaceutical company committed to the discovery and global development of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases.
In March 2023, HUTCHMED (China) Limited (NASDAQ:HCM) closed an exclusive license agreement with Takeda Pharmaceutical Company Limited (NYSE:TAK) to further the global development, commercialization, and manufacture of fruquintinib outside China. The company received a $400 million upfront payment in April 2023 and is eligible for up to $730 million in additional potential payments.
On November 8, HUTCHMED (China) Limited (NASDAQ:HCM) announced that its partner Takeda received approval from the FDA for FRUZAQLA™ (fruquintinib), an oral targeted therapy for adults with metastatic colorectal cancers.
2. Sasol Limited (NYSE:SSL)
Average Analyst Price Target as of February 27: $14.63
Upside Potential as of February 27: 90.74%
Number of Hedge Fund Holders: 12
Sandton, South Africa-based Sasol Limited (NYSE:SSL) is a global chemicals and energy company. It produces and markets a range of high-quality products in 22 countries.
On February 26, Sasol Limited (NYSE:SSL) released its financial results for six months ended December 31, 2023. Its revenue shrunk by 9% y-o-y to R$136.3 billion, while net income shrunk 38% y-o-y to R$9.2 billion.
Sasol Limited (NYSE:SSL) is the only South African stock on our list of 12 best emerging markets stocks to buy according to analysts. As of Q4 2023, its shares were held by 12 of the 933 hedge funds tracked by Insider Monkey.
1. Zai Lab Limited (NASDAQ:ZLAB)
Average Analyst Price Target as of February 27: $60.52
Upside Potential as of February 27: 169.10%
Number of Hedge Fund Holders: 15
Shanghai, China-based Zai Lab Limited (NASDAQ:ZLAB) is a commercial-stage, global biopharmaceutical company focused on medicines for oncology, autoimmune disorders, infectious diseases, and neurological disorders.
On February 27, Zai Lab Limited (NASDAQ:ZLAB) released its financial results for Q4 2023. Its revenue, at $66 million, missed consensus estimates by $5.6 million, while normalized EPS, at -$0.98, missed estimates by $0.11.
On December 14, Morgan Stanley initiated coverage of Zai Lab Limited (NASDAQ:ZLAB) shares with a price target of $47.5 per share and an ‘Overweight’ rating. The target price represents a potential upside of 111.20%.
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