China’s latest economic stimulus package is making waves across global markets. The People’s Bank of China (PBoC) has taken bold steps, slashing bank reserve requirements and lowering key repo rates. This influx of liquidity, totaling approximately $140 billion, is designed to boost growth by encouraging lending. While the news has caused some market volatility, certain U.S.-listed Chinese stocks have caught the attention of analysts. Here’s a closer look at three large-cap stocks with strong upside potential, all currently rated as Buys.
Trip.com Group (TCOM):
This online travel agency, China’s largest, has seen its stock soar over 43% in the past year, with a remarkable 44% gain year-to-date. Analysts are optimistic about Trip.com’s future as China’s travel sector rebounds, particularly with low passport penetration in the country. As international travel picks up, Trip.com is poised for higher-margin growth. Analysts predict the stock could rise between $56 and $72 over the next 12 months, with an average target of $64 — representing an impressive 42.21% upside.JD.com (JD):
One of China’s leading e-commerce platforms, JD.com’s strength lies in its robust logistics and fulfillment infrastructure, which has fueled its 22% gain this year. Analysts are bullish on JD’s future, estimating a price range of $28 to $47, with an average target of $37.50. This suggests a potential 36.97% upside over the next year, making it another strong pick in the sector.Alibaba Group (BABA, BABAF):
A global e-commerce giant, Alibaba has faced challenges in recent years, but its diverse business operations, from online marketplaces to cloud computing, continue to attract investor interest. The stock is up 21% year-to-date, and analysts forecast a 12-month price target range of $85 to $130, averaging at $107.50. This implies an upside of 29.78%, making Alibaba a solid long-term bet.With China’s economic engine revving up thanks to the latest stimulus package, these three large-cap stocks—Trip.com, JD.com, and Alibaba—are well-positioned to capitalize on the country’s recovery and growth.
