With trade war fears plaguing the market, Chinese stocks have been receiving some bad rap recently. But don’t let this distract you. The top China-based stocks present stellar investing opportunities. And you don’t just have to take my word for it. Here we use TipRanks to pinpoint the best Chinese stocks according to the Street. This website tracks the latest ratings from over 4,800 analysts — so we can find the most highly-rated stocks with just a couple of clicks.
If you think about it, the restrictions on foreign companies means a whole host of Chinese-equivalent U.S. stocks has sprung up. From WhatsApp to Google, China has its own parallel universe of top-notch companies. The best part is that these stocks appear seriously undervalued. It’s true that it’s much easier to invest in a company whose products you know and use. But for the more adventurous investor, these stocks have huge potential.
Here are 5 A-rated stocks to add to your wish list right now:
Top Heal Care Stocks To Invest In Right Now: SVB Financial Group(SIVB)
SVB Financial Group (NASDAQ:SIVB) is my pick from the financial sector. Up 25% YTD, it’s on a seven-year winning streak that doesn’t look to be broken anytime soon.
If you can only own one bank, I wholeheartedly suggest you hold SVB Financial, the holding company for Silicon Valley Bank, consistently named one of the 100 best banks in America.
Silicon Valley Bank got its start lending money to tech startups and has since broadened its base to include innovators and entrepreneurs outside the technology sector with a loan portfolio nearing $25 billion.
“The combination of these two things [digital health and machine learning], I think is super exciting,” SVB Financial CEO Greg Becker told Fortune recently. “I think we’re going to see an incredible amount of innovation over the next five, ten, 15 years.”
Innovation is a big reason I called SIVB in 2013 one of the five best stocks to own for the next 20 years. Up 192% since then, I believe it’s just getting started.
Top Heal Care Stocks To Invest In Right Now: Equinix Inc.(EQIX)
Equinix (NASDAQ:EQIX) is my pick from the technology sector. Down 5% YTD, it’s not even keeping up with its diversified REIT peers.
However, anyone who has owned EQIX over the past five years — 21% annualized total return — has significantly benefited from the data center buildout that has been going on to support the growing cloud.
In March, InvestorPlace contributor and Finbox.io founder, Matt Hogan, discussed the six most inexpensive growth stocks to buy; Equinix was on his list.
“Equinix’s stock currently trades at $414.48 per share as of Tuesday [March 20], up 9.4% over the last year. On a fundamental basis, the company’s stock is trading at a 7.0% discount to finbox.io’s intrinsic value estimate,” Hogan wrote. “However, the average price target from 22 Wall Street analysts of $507.23 implies 23.2% upside.”
At the time, Finbox.io had a fair value of $444, providing investors with 7% upside. Now trading around $428, Finbox.io suggests it has 22% upside or fair value of $520.
With the public cloud computing market expected to grow by 22% in 2018 to $178 billion, the company’s data centers will continue to experience strong demand.
As long as Amazon and the rest of the major cloud participants continue to grow, so too will Equinix.
Top Heal Care Stocks To Invest In Right Now: Baidu Inc.(BIDU)
As China’s No. 1 search engine, Baidu Inc (NASDAQ:BIDU) is often nicknamed the ‘Google of China.’ Like Google, Baidu’s business interests span much more than just search. Baidu’s business covers the cloud, AI, maps, IT security and self-driving technology. The latest update: Baidu has announced a new partnership with Ford Motor (NYSE:F) to develop smarter cars for the Chinese market.
Ford will now install Baidu-powered in-vehicle infotainment systems known as DuerOS in its cars for Chinese customers. “Baidu and Ford share the vision of using technology to build the future of driving,” says Ya-Qin Zhang, president of Baidu. “Together, with Baidu’s leading-edge AI technology and Ford’s advanced engineering expertise, we will transform the mobility ecosystem and create the next-generation in-vehicle experience for consumers.”
And from a Street perspective, Baidu certainly gets the thumbs up. The stock has 100% support from top analysts specifically and a $306 price target (26% upside potential). Top Oppenheimer analyst Jason Helfstein has just reiterated his BIDU Buy rating. The “current valuation is too low for the leading Chinese search engine” argues Helfstein. He points out that BIDU is in prime place to benefit from the secular growth of China’s online ad market.
Top Heal Care Stocks To Invest In Right Now: GlaxoSmithKline PLC(GSK)
You certainly know the name GlaxoSmithKline (NYSE:GSK). As investors, we aren’t going to freak out about a U.K.-based company, right? We also know it is an $100 billion pharmaceutical company.
It has four divisions: Pharmaceuticals, Pharmaceuticals R&D, Vaccines and Consumer Healthcare. Besides its huge portfolio of proprietary pharma drugs, it has other products you certain know: Otrivin, Panadol, parodontax, Poligrip, Sensodyne, Theraflu and Voltaren.
It also has consumer products, such as drinks and foods, toothpastes, toothbrushes, mouth rinses, medicated mouthwashes, gels and sprays, denture adhesives, and denture cleansers.
GSK invented NicoDerm and has more than three dozen other products in development. It’s no wonder GSK has billions of cash on the balance sheet, and more than enough cash flow to pay its dividend, presently at 5.4%.
Top Heal Care Stocks To Invest In Right Now: Alibaba Group Holding Limited(BABA)
Chinese e-commerce giant Alibaba Group Holding (NYSE:BABA) is always one of the Street’s favorite stock picks. And this doesn’t appear to be changing any time soon. On the contrary; our data shows that in the last three months 15 analysts have published BABA Buy ratings. Couple this with a bullish $248 price target (34% upside potential) and you can see why BABA is a hot stock pick right now.
Indeed, you may get more than you bargained for. Five-star Argus Research analyst Jim Kelleherhas just initiated coverage of BABA with a $275 price target. This translates into massive upside potential of 48%. Kelleher wrote, “Although BABA shares have had a strong multi-year run, we regard the stock as attractive based on mid-double-digit growth prospects for GMV [gross merchandise volume].”
But this huge sales potential still isn’t reflected in current prices: “We believe that BABA’s growth prospects are accelerating more rapidly than the share price, creating a favorable entry point. The shares also appear attractively valued. Based on peer group, historical comparables analysis, and discounted free cash flow valuation, we believe the BABA shares are attractive up to $330 and beyond.” We’re sold!