Market Overview

Three Rising Asian Stocks With More Room To Grow

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Three Rising Asian Stocks With More Room To Grow

E-House (China) Holdings (NYSE: EJ), ICICI Bank (NYSE: IBN) and Tata Motors (NYSE: TTM) are each trading more than 20 percent higher than 90 days ago.

They all pay dividends, and analysts see some further room for them to grow into the new year.

In addition, other Asian stocks traded on U.S. exchanges that were top performers in the period include Chinese retailer Vipshop Holdings, real estate Internet portal SouFun Holdings, JinkoSolar, as well as Himax Technologies out of Taiwan.

Below we take a look at how E-House (China) Holdings, ICICI Bank and Tata Motors have fared and what analysts expect from them.

See also: Bullish News From The Black Skies Over Shanghai

E-House (China) Holdings

The real estate boom in China helped this real estate services company post greater-than-expected earnings in the most recent quarterly report. E-House sports a market capitalization near $1.5 billion and offers a dividend yield of around 1.4 percent. Its long-term earnings per share (EPS) growth forecast is about 25 percent.

The number of shares sold short in E-House represented less than two percent of the float as of the November 15 settlement date. That was the highest level of short interest in at least a year, though. And the average daily share volume was more than double that in the previous period.

Four of the five analysts surveyed by Thomson/First Call who follow the stock recommend buying shares, with two of them rating the stock at Strong Buy. Their mean price target, or where the analysts think the share price will go, is more than 22 percent higher than the current share price.

The share price is almost 145 percent higher than six months ago, including a pop of more than eight percent in the past week. Over the past six months, the stock has way outperformed the like of Jones Lang Lasalle, as well as the Nasdaq and the S&P 500.

ICICI Bank

Top line growth helped boost earnings in the most recently reported quarter, and the stock last week broke above its 200-day moving average for the first time since June. The money center bank has a market cap of more than $22 billion. Its dividend yield is near 1.9 percent, and the return on equity is more than 30 percent.

The short interest in ICICI Bank was a little less than one percent of the total float in the middle of November. Note that the number of shares sold short has been on the decline since mid-August. It would take about two days to close out all of the short positions.

Only one analyst was surveyed, and that analyst has rated the stock at Strong Buy for the past three months. The analyst's price target indicates more than 16 percent potential upside. Note though that the price target is less than the 52-week high set back in mid-May.

The share price is up more than 46 percent from the 52-week low back in August, including a rise of about 11 percent in the past month. However, over the past six months, the stock has underperformed not only Bank of America and Citigroup, but the S&P 500 as well.

Tata Motors

The company's Jaguar Land Rover arm just announced plans to build a new manufacturing facility near Rio de Janeiro to make cars for the Brazilian market. The automaker is headquartered in Mumbai, India, and it has a market cap of more than $25 billion. Its long-term EPS growth forecast is about 25 percent.

After dropping 22 percent in the previous period, the number of shares sold short reclaimed most of that decline in the first two weeks of November. That represented around one percent of the total float. The days to cover shrank from about three to a little more than two during the period.

All three of the polled analysts rate the stock at Strong Buy. And they feel shares have some head room as their mean price target is nearly 10 percent higher than the current share price. Shares have not traded at that level since 2010, and then only briefly.

The share price is more than 31 percent higher than three months ago, even though it has pulled back less than two percent from a recent multiyear high. The stock has outperformed competitors Ford, General Motors and Toyota over the past six months, as well the broader markets.

See also: U.S. Auto Sales: Who Gained, Who Lost?

At the time of this writing, the author had no position in the mentioned equities.

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Posted-In: Bank of America Citigroup E-House (China) Holdings Ford General Motors Himax Technologies ICICI BankTrading Ideas Best of Benzinga

 

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