Why NetEase Inc (ADR) (NTES) Is One Of Our Top Stock Picks

Page 2 of 2

The Risks Of Owning NTES Stock Right Now

In terms of valuations, if you exclude one time or non-recurring items and look at the PE for NetEase Inc (ADR) (NASDAQ:NTES), it’s actually lower than the industry average. In terms of its Price to Sales multiple, NetEase is more expensive than peers, at a P/S ratio of 6.4. However, given the company’s strong fundamentals, you’d probably expect that, and take it too.

NTES Stock Looks Set For Another Good Year In 2017

We think we’ve done a great job, picking NetEase as early as 2011, and we think the stock still looks good for long term investors. As Nathan Reiff of Investopedia puts it (2):

“U.S. investors often neglect companies outside of the U.S. market, particularly those that don’t have the same recognition in this part of the world. NetEase (NTES) is one of those companies.”

If you’re considering the idea of initiating a long position in NetEase in 2017, what The Motley Fool‘s (3) Bradley Seth McNew has to say may help you make up your mind:

“NetEase Inc (ADR) (NASDAQ:NTES) is one of the best plays on the thriving Chinese gaming market. This Chinese internet services company offers online gaming packs and also partners with companies such as Activision Blizzard to distribute many of their games throughout China. NetEase recently announced a slew of new PC and mobile games, 29 in total, and has promised to continue releasing new games in 2017. By valuation, NetEase is also the cheapest company on the list despite its great showing in 2016.”

To sum up, we think NTES is a good option for long term investors. Do check out our top stock picks from the tech sector, which we’ve linked to in the first paragraph. If you’re also looking for great auto stocks, check out our top auto stock picks, which have beaten the S&P 500 by over 148%.

And if you think fellow investors would find this post useful, do hit the share buttons on the left had side of this page. Happy investing – Team Amigobulls.

The article Why NetEase Inc (NTES) Is One Of Our Top Stock Picks originally appeared on amigobulls.com. Watch our analysis video on NTES

Amigobulls.com – Watch, Analyze, Invest. Why spend hours putting together numbers you can get in minutes, in one simple video? Our ‘Robo Advisor’ videos give you every number that matters, in 1 minute. Find insightful articles with ideas on investing, top stock picks that outperform the markets, personalized portfolio analysis videos and a whole lot more. Amigobulls.com – Your Friend On Wall Street.

Additional Links:

(1) http://www.netease.com/phoenix.zhtml?c=122303&p=irol-newsArticle&ID=2222406&ref=il

(2) http://www.investopedia.com/news/gaming-stocks-watch-2017-atvi-ntes/?ref=il

(3) http://www.fool.com/investing/2016/12/31/top-gaming-stocks-to-buy-in-2017.aspx?ref=il

Page 2 of 2