China’s economy has undergone an uneven recovery since the country emerged from the global pandemic. Last year, analysts feared the world’s second-largest economy would fall into deflation, similar to Japan’s in the 1990s. While consumer prices in China have generally floated above deflation territory, price growth has generally remained weak. In May, the consumer price index rose a modest 0.3% from the same month in 2023. Declines in the producer price index, which is a broad measure of wholesale prices, also eased. What helped to keep China’s economy afloat has been its strong export sectors, especially electric vehicles. Exports in April and May came well above economists’ expectations.

That is all to say, China is on the road to recovery despite uneven data, and more government policy stimulus will be needed to get the economy fully back on track. Because of the economic turmoil, Chinese stocks have been underperformers. As they trade at record-low valuations, it may be time to buy up the strong buy Chinese stocks that Wall Street is optimistic about.

BYD (BYDDY)

China’s electric vehicle (EV) landscape showcased the country’s market dynamism. Although it took years for China to get to this point, its EV companies are successfully dominating the EV market. However, no Chinese EV maker has been as successful as BYD (OTCMKTS:BYDDY). A lithium-ion battery marker turned electric vehicle behemoth, BYD has definitely come a long way.

Despite all the news about an EV market slump, Chinese EV makers continued to grow their sales and deliveries on a year-over-year basis. For example, at the end of the first quarter, BYD’s sales climbed 46% from the first quarter of 2023 to 301,631. The EV maker’s April and May key performance indicators also came in with similarly robust growth figures. In April, sales increased 48.9% from the same month in 2023, totaling 312,048, and for May, BYD sold 331,817, up 38.1% year-over-year.

Strong growth domestically and abroad has kept BYD’s deliveries and sales figures elevated. A newly announced hybrid vehicle, which can drive 2,000 kilometers on a single charge and boasts a cheap price tag, will be one of the company’s growth catalysts going forward.

Out of the 30 Wall Street firms covering BYD, the Chinese EV maker has been able to garner six “strong buy” ratings from Wall Street firms and 22 “buy” ratings.

Alibaba (BABA)

Alibaba‘s (NYSE:BABA) share price plummeted 51.8% over the past five years. The regulatory crackdown on the technology sector and China’s slow shift from its controversial “zero-Covid” policy were just a couple of issues that led to the broad sell-off. Now, China’s uneven economic recovery, which has yet to see consumer confidence rise, has also put a dent in Alibaba’s growth, especially in its e-commerce unit.

Last year, to kick the firm into high gear, Alibaba CEO Daniel Zhang announced the company would split into six separate business units, all of which would be capable of an initial public offering. To continue spurring investor confidence, the company has also increased its share buyback program by $25 billion.

At the end of the first quarter, activity increased among the firm’s core e-commerce businesses. Revenue from Taobao and Tmall, Alibaba’s China e-commerce division, rose 4% from a year ago, higher than the reported growth in the prior quarter.

There are 44 Wall Street firms covering BABA shares, and seven have given the e-commerce giant a “strong buy” rating, while 30 have rated its shares a “buy.”

Baidu (BIDU)

Baidu (NASDAQ:BIDU) is another Chinese tech giant whose share price has reeled from politics and a slowing economy. The past five years have seen BIDU shares fall 20.5%, yet Wall Street is feeling more optimistic about the company’s prospects than ever. In particular, Baidu has garnered seven “strong buy” ratings and 24 “buy” ratings from Wall Street analysts.

The company runs China’s largest internet search engine business. Baidu’s new growth vertical will be related to artificial intelligence, a technology Baidu has invested millions of dollars into research and development for about a decade. For the first quarter of 2024, Baidu’s earnings results were mixed. The company missed revenue but beat EPS estimates. Additionally, revenue related to Baidu’s AI Cloud unit increased 6% on a year-over-year basis, underscoring the platform’s gaining momentum.

As Baidu continues to invest and cultivate its AI products, its shares will likely gain in value. Trading at only 8.3x forward earnings, BIDU does look like a “strong buy.”

On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.