- (0:30) – Are Chinese Stocks An Opportunity For Value?
- (3:30) – Tracey’s Top Stock Picks
- (12:00) – Big Takeaways on Chinese Stocks: BABA, CTRP, TAL, TCEHY, JD
Welcome to Episode #100 of the Value Investor Podcast
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio service, shares some of her top value investing tips and stock picks.
The Chinese stock market has plunged and the Chinese stocks that trade on the US markets have weakened in the last month as the trade and tariff issues between the United States and China have heated up.
Value investors like to buy stocks when everyone else is running away, or simply ignoring a sector or industry.
Is there finally an opening for value investors to buy the high growth, big cap Chinese companies?
5 Big Cap Chinese Stocks Off Their Highs
1. Alibaba(NYSE:BABA) is down about 9% over the last month. Is that enough to make it cheap? It still has a forward P/E of 29 but it has a PEG ratio of just 0.9, which indicates there’s value there.
2. Ctrip.com (NASDAQ:CTRP), the online travel company, has fallen 8.4% over the last month. While earnings are expected to rise 20%, are they cheap enough for value investors to buy?
3. Tal Education Group (NYSE:TAL) has been one of the hottest big cap Chinese stocks over the last year. It’s up 75% during that time. Shares have fallen 17.5% over the last month, though. Is it time to get in?
4. Tencent (OTCMKTS:TCEHY) is one of the few on this list that has stalled out in 2018. But these shares have weakened over the last month as well, falling 10%. Are they cheap enough to dip your toe in now?
5. JD.com (NASDAQ:JD) has lost just 4.6% in the last month, which makes it the best performer among these five stocks. Earnings are expected to jump 23% in 2018 and a stunning 83% in 2019. But is it still too hot to handle for value investors?
Value investors are always looking for quality companies that have gone on sale.
What else should you know about the Chinese stocks?
Listen to this week’s podcast to find out.
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Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.