3 China Stocks to Buy on the Dip: June 2024

Core Viewpoint - Companies often experience crises but can emerge stronger, presenting investment opportunities for those who retain their shares during downturns [1] Group 1: Alibaba Group Holding (BABA) - Alibaba is a Chinese multinational conglomerate focused on e-commerce, cloud computing, digital media, and logistics, operating platforms like Taobao and Tmall [2] - BABA stock is trading at $73.67 with a market cap of $178.4 billion, having declined 56% over the past 5 years, yet analysts predict a target price of $107.51, indicating a potential growth of 46% in the next year [2] - The company has positive financials, with a profit margin of 8.50% and an operating margin of 13.35%, alongside an operating cash flow of $183 billion [2] - Recent advancements include the introduction of an AI programmer and partnerships with Apple, enhancing its growth prospects [3] Group 2: JD.com (JD) - JD.com is a major Chinese e-commerce platform known for its extensive product range and robust logistics network [4] - The stock is currently priced at $28.10 with a market cap of $43 billion, down 19.5% over the past year, but analysts forecast a target price of $42.51, suggesting a potential growth of 51% [5] - JD.com has consistently exceeded EPS predictions with an average surprise of 17.5% and has reported over $1 trillion in revenue for the past two years [5] - Recent fleet expansions indicate strong growth potential, making JD.com a recommended buy [5] Group 3: PDD Holdings (PDD) - PDD Holdings operates a multinational e-commerce portfolio, including Pinduoduo and Temu, connecting businesses and consumers [6] - The stock is trading at $143.86 with a market cap of nearly $200 billion, down 4% this month, but analysts predict a target price of $202.64, indicating a growth potential of 40.8% [6] - PDD has shown impressive quarterly earnings growth of 245.60% and has consistently beaten EPS predictions [6] - The Temu app has experienced significant user growth, with 167 million monthly active users in Q1 2024, a 614% increase from the previous year, positioning PDD well for future growth [7]