From InvestorPlace: 2024-07-09 06:03:27

The iShares MSCI China ETF (MCHI) has seen an 8% surge in the last six months, reflecting renewed investor optimism in Chinese stocks. Three undervalued Chinese stocks worth considering are Alibaba (BABA), PDD Holdings (PDD), and TAL Education Group (TAL).

Alibaba’s stock presents a “buy the dip” opportunity despite a 10% decrease in market value. Its fourth-quarter revenue beat estimates by $256.74 million, with strong segmental growth in e-commerce and logistics. With a low forward P/E ratio of 8.91x, Alibaba remains a compelling investment option.

PDD Holdings, an e-commerce player, has been upgraded to Buy by Goldman Sachs due to its resilient revenue growth and ROE ratio of 46.3%. With a low price-to-earnings-growth ratio and bullish technical indicators, PDD stock appears to offer growth potential at a reasonable price.

TAL Education Group is a pioneer in online education in China, showing a 59.7% revenue increase in the fourth quarter. With a strong cash position and a low price-to-sales ratio of 4.4x, TAL stock is a promising investment choice. Despite risks, TAL stock’s prospects look favorable for growth in the coming years.



Read more at InvestorPlace: The 3 Most Undervalued Chinese Stocks to Buy in July 2024