U.S. large-cap stocks were pushing relentlessly higher on Monday after President Donald Trump announced a delay in the imposition of another round of tariffs on Chinese imports thanks to solid progress between trade negotiators.
Wall Street is viewing this as an indication a deal is forthcoming. And just in time, too, as China’s economy (and stock market) has been hit harder during the long tit-for-tat trade spat. An effort by Beijing to pump up the economy with another round of credit stimulus, including central bank easing, isn’t having nearly the impact such moves have had in the past.
No surprise then that the iShares China ETF (NYSEARCA:FXI) is up more than 2% to break out of an eight-month funk, returning to levels not seen since June. Here are four China stocks worth a look:
China Stocks: Weibo (WB)
Shares of Chinese Twitter (NYSE:TWTR) knockoff Weibo (NASDAQ:WB) are exiting a five-month consolidation range to push towards its 200-day moving average, returning to levels not seen since early October. Watch for a breakout here, which would end a long downtrend that started more than a year ago and resulted in a loss of more than 50% from the prior high.
The company will next report results on March 5 before the bell. Analysts are looking for earnings of 76 cents per share on revenues of $482 million. When the company last reported on Nov. 28, earnings of 75 cents per share beat estimates by five cents on a 44% rise in revenues.
Shares of China stock Sina.com (NASDAQ:SINA) are also exiting a long, multimonth consolidation range and look ready to end a year-long downtrend that also resulted in a 50%-plus decline from the prior high. The rally comes at a bad time for the analysts at CLSA, which downgraded the stock on Feb. 19. Credit Suisse analysts initiated with a “neutral” rating on Feb. 4.
The company will next report results on March 5 before the bell. Analysts are looking for earnings of 80 cents per share on revenues of $575.3 million.
When the company last reported on Nov. 28, earnings of 93 cents per share beat estimates by 24 cents on a 25.8% rise in revenues.
Shares of Chinese electric vehicle startup Nio (NYSE:NIO) are breaking up and out of their post-IPO trading range, prepping what looks like a rally at the September high. While American competitor Tesla (NASDAQ:TSLA) is pushing into their market with the start of construction of a Gigafactory in Shanghai, the company was the subject of a 60 Minutes segment over the weekend talking about China’s state-backed efforts to dominate the industry.
The company is already in market with its ES8, a 7-seater premium SUV and an upcoming smaller SUV dubbed the ES6.
JD.com (NASDAQ:JD) shares are rising up and out of a six-month basing pattern with a move towards its 200-day moving average. Shares also fell more than 50% from their early 2018 highs, and should be good for a 50% retracement of the loss at the very least. That should target a rise to around the $35-a-share level, which would be worth a gain of around 30% from here.
The company will next report results on Feb. 28 before the bell. Analysts are looking for a loss of four cents per share on revenues of $19.7 billion.
When the company last reported on Nov. 19, earnings of 12 cents per share beat estimates by one cent.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.