The sentiment on US-China trade is improving. That includes a little reported story from this weekend where Chinse Vice Premier Liu He made very constructive comments about China’s strong desire to help resolve the trade dispute with the US.
The point is that it may finally be time to consider ownership of some of the neglected and beaten down Chinese growth stocks. Internet giant, Alibaba (BABA) is a great example.
Shares are up on the year, but still a long way removed from the 52 week high of $195.72. And even further away from the average target price set by Wall Street analysts at $223.
If the dark cloud of the trade deal is starting to lift than it bodes well for these top rated Chinese stocks to surge ahead.
WARNING: Not all Chinese stocks are equally attractive.
To help you focus on the best Chinese stocks at this time I offer the table below. There you will discover that only 18 of the 103 stocks listed are considered worthy of Buy ratings from the POWR Ratings System.
Note that the majority of these stocks actually have D and F sell ratings applied. Obviously stay away from those shares. And if you already have them in your portfolio, then think of switching to those sporting the A and B buy ratings.
Amongst that group are other well-known companies like JD.com (JD) which has been stuck under the highest all year long…and maybe finally ready to break above with the good news on trade talks (the 3% gain for JD on Monday certainly may be a sign it is ready to rally to new heights).
The key with the list of Chinese stocks below is to click on each ticker that interests you. This will take you to the quote page on StockNews.com where you can access full details on the POWR Ratings for each firm.
Meaning that the POWR Ratings is actually a composite of 4 different ratings looking at everything from long term attractiveness to trade grade to industry rank to how well it stacks up to its peers. The more A and B scores for each stock…the more attractive the outlook.
BABA shares were trading at $173.55 per share on Monday afternoon, up $4.42 (+2.61%). Year-to-date, BABA has gained 26.61%, versus a 21.69% rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...
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