Top China Stocks To Own Right Now

In January 2018, the World Bank projected that the global economy is set to expand by 3.1% in 2018. However, emerging economies will grow around 4.5% in 2018 and an average of 4.7% in both 2019 and 2020. Per the World Bank, East-Asia and Asia-Pacific region will be the fastest-growing regions globally.

Recently, the IMF reaffirmed that the global economy will grow at 3.9% in both 2018 and 2019. However, emerging markets of Asia will grow at around 6.5% over 2018–2019. Emerging markets of Europe will expand by more than 5% while Latin America will grow at 1.9% and 2.6% in 2018 and 2019, respectively.

Top China Stocks To Own Right Now: Westpac Banking Corporation(WBK)

As Australia’s oldest bank, Westpac Banking Corp (ADR) (NYSE:WBK) has enjoyed an enormous first-mover advantage Down Under. The institution makes consumer and business loans as well as provides wealth management throughout Australia and New Zealand.

The bank has leveraged an extensive network and a high credit rating to bolster both revenue and profit growth. Unlike many banks that pay high dividends, it has grown revenue and earnings consistently for several years. Although the stock has traded in a range since soon after the financial crisis, that might change in time. Over the last five years, revenues have increased by about 3.6% per year. While earnings may have fluctuated, they increased on average by just over 6.1% per year over the same period. As a result, the stock has fallen to an 11.4 PE ratio. The average PE over the last five years has stood at 14.2, indicating growth could come.

As for the dividend, payment in Australian dollars has led to slight fluctuations. With that movement, the annual dividend currently comes in at $1.41 per share. Investors must endure some currency risk with this dividend. Still, with a yield close to 6.7% and the potential for stock growth, a little currency risk yields a substantial amount of reward.

Top China Stocks To Own Right Now: CyrusOne Inc(CONE)

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Very few cloud computing stocks offer dividends. The most successful companies, after all, still have significant opportunities to invest capital back into the business.

But investors looking for yield and cloud exposure can look to data center REITs. And the choice here is CyrusOne (NASDAQ:CONE). Cloud computing efforts require space and datacenter owners like CyrusOne provide that space for a handsome fee.

The industry is still growing — and yet CONE looks reasonably priced. The stock trades at under 18x the midpoint of guidance for full-year normalized FFO (funds from operations). The dividend yield is a solid 3.2%. CONE isn’t going to be a high-flyer like other stocks on this list could be, but it’s an attractive investment with the potential for double-digit annual total return going forward.

Top China Stocks To Own Right Now: Paycom Software, Inc.(PAYC)

Finally, Paycom — which is changing how HR departments function — also benefits from high switching costs. The company’s solution goes well beyond legacy operations like payroll. It includes keeping track of employee health insurance compliance, managing potential hires, and even scheduling time off. That data is valuable, and so is the time that HR employees would have to spend retraining and migrating data if their employer chose a different HR platform.

Top China Stocks To Own Right Now: Xilinx, Inc.(XLNX)

Xilinx, Inc. (NASDAQ:XLNX) isn’t exactly off the radar. On the other hand, with a modest market cap of $17 billion, it’s not exactly turning a lot of heads either.

Give it time, though.

Xilinx, for the unfamiliar, makes a variety of technologies that connect (usually) dissimilar things. That can mean a lot, of course, but Xilinx does a lot of different things. Its big claim to fame within the world of AI stocks is the development of high-performance FPGAs, or Field Programmable Gate Arrays.

FPGAs can be, as the name suggests, programmed and reprogrammed on the fly by a coder that needs a device to do something not previously foreseen. That’s in contrast with ASIC chips, or Application-Specific Integrated Circuits, which can only be programmed once at the time as they’re being manufactured.

It seems like a minor benefit, but the flexibility of FPGAs has proven indispensable in many machine-learning environments, and edge computing in particular.

It’s not the high-end artificial applications like self-driving vehicles. Rather, much of Xilinx’s wares are the low-brow stuff, like managing sensors that make Internet of Things networks work as they should. That’s where the tangible, practical opportunity is though.

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