We recently compiled a list of the 10 Best Asian Stocks to Invest in According to Analysts. In this article, we are going to take a look at where ICICI Bank Limited (NYSE:IBN) stands against other best Asian stocks to invest in according to analysts.
Asian markets traded mixed on Friday, January 24 as investors digested a series of economic reports from China, which showed robust growth in the fourth quarter of 2024. The country’s economy expanded by 5.4%, surpassing expectations and contributing to a full-year growth rate of 5%, according to China’s National Bureau of Statistics. Key economic indicators from China were particularly encouraging. Retail sales in December jumped 3.7% year-on-year, exceeding the forecast of 3.5%. Industrial output also expanded 6.2% year-on-year, higher than the anticipated 5.4%. This positive economic data was a significant driver of market sentiment across the region and provided a strong tailwind for market performance, especially in markets closely tied to China’s economic health.
Japan’s Nikkei 225, however, ended the day down 0.31% at 38,451.46, while the Topix lost 0.33% to 2,679.42. Despite the positive economic data from China, Japanese markets were influenced by broader global factors and domestic economic concerns. South Korea’s Kospi closed slightly lower, falling 0.16% to 2,523.55, while the tech-focused Kosdaq edged up 0.06% to 724.69.
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In an interview with CNBC on January 15, David Herro, Partner and Portfolio Manager at Harris Associates, discussed the potential opportunities in international markets. Herro noted that while U.S. stocks have been the center of attention and have seen significant gains over the past decade, international equities, offer attractive investment opportunities due to their undervalued nature and growth potential.
Herro emphasized that the valuation differential between U.S. and international stocks has become quite large, creating pockets of opportunity for investors. Many international stocks are trading at attractive multiples, with earnings ratios of about 10 times, and these valuations are based on projected earnings growth of around 10%. This combination of low multiples and reasonable growth expectations makes international equities almost irresistible for investors.
Herro pointed out that the growth rates of international companies are not solely dependent on their home markets but are influenced by their global operations. For instance, many Asian companies, particularly in sectors such as technology, manufacturing, and consumer goods, have a significant presence in global markets. This global diversification can provide robust growth opportunities, even in the face of local economic challenges. He also highlighted the importance of considering the fundamentals of individual companies rather than just the macroeconomic conditions of their home countries. Many companies, despite operating in regions with varying economic conditions, have strong business models and are positioned to benefit from global trends such as digitalization, urbanization, and rising consumer spending.
As investors seek opportunities beyond the U.S., Asian markets stand out as promising destinations for long-term growth.
A businessperson looking out a city skyline, from the top floor of a high-rise building.
Our Methodology
To compile our list of the 10 best Asian stocks to invest in according to analysts, we used Finviz and Yahoo stock screeners to identify the 30 largest Asian companies. From that list, we narrowed our choices to the 10 companies that analysts see the most upside to. We also included their stock price as of January 27 and their hedge fund sentiment, which was taken from Insider Monkey’s Hedge Fund database of 900 elite hedge funds as of Q3 of 2024. The list is sorted in ascending order of analysts’ average upside potential as of January 27.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
ICICI Bank Limited (NYSE:IBN)
Upside Potential: 29.08%
Stock Price as of January 27: $28.34
Number of Hedge Fund Holdings: 32
ICICI Bank Limited (NYSE:IBN) is one of the country’s largest private-sector banks in India. The bank provides a comprehensive suite of services, including retail and corporate banking, treasury operations, and insurance. ICICI Bank Limited (NYSE:IBN) serves a diverse customer base, ranging from individual account holders to large multinational corporations, and also has a significant international presence.
ICICI Bank Limited (NYSE:IBN) is committed to a 360-degree customer-centric approach, focusing on understanding and meeting the diverse financial needs of its customers. The bank aims to provide holistic solutions by integrating various financial services and leveraging its extensive franchise. This approach involves deepening customer relationships and enhancing delivery capabilities to offer seamless and personalized services. By aligning with the evolving needs of customers and integrating with various ecosystems, ICICI Bank Limited (NYSE:IBN) aims to capture new opportunities and expand its market share across key segments.
ICICI Bank Limited (NYSE:IBN) is also expanding its branch network and distribution channels to reach a broader customer base. The bank is also diversifying its revenue streams by growing its fee income. ICICI Bank Limited (NYSE:IBN) is also investing heavily in technology to enhance its digital offerings and operational resilience.
Overall IBN ranks 7th on our list of the best Asian stocks to invest in according to analysts. While we acknowledge the potential of IBN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IBN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.