Q2 STOCKS TO BUY

Alibaba Group, JD.Com, and Youku Tudou Follow China Into the Red

China's Shanghai Composite took sharp dive overnight, sending Alibaba Group Holding Ltd, JD.Com Inc (ADR), Kandi Technologies Group Inc, Weibo Corp (ADR), Youku Tudou Inc (ADR), and YY Inc (ADR) on a wild ride

Aug 18, 2015 at 10:37 AM
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The volatility in China's equities and currency markets has been fodder for the Street in recent weeks. A sharp drop in the Shanghai Composite overnight has the mainland front and center in today's trading -- and U.S.-listed China-based stocks such as Alibaba Group Holding Ltd (NYSE:BABA), JD.Com Inc (ADR) (NASDAQ:JD), Kandi Technologies Group Inc (NASDAQ:KNDI), Weibo Corp (ADR) (NASDAQ:WB), Youku Tudou Inc (ADR) (NYSE:YOKU), and YY Inc (ADR) (NASDAQ:YY) in focus.

BABA is off 1.7% at $74.28. This only echoes the equity's withstanding trajectory, with the security staring at a 28.6% year-to-date deficit, and fresh off an earnings-induced record low of $71.03. While analysts have begun changing their tune on the underperformer, there's still plenty of room for downgrades and/or price-target cuts. Eighty-seven percent of brokerages deem BABA a "buy" or better -- while the average 12-month price target of $96.63 sits in territory not charted since late January.

JD has been tracking China's volatility of late, and today, the shares are down 3.2% at $26.49. While the stock has added 16.5% this year, JD has more recently been testing support in the $26.50 region -- an area that previously provided a foothold in early February.

KNDI has been a long-term laggard, down nearly 49% in 2015 -- and coming off an absolutely terrible July. The stock plunged 2.4% out of the gate, but was last seen 0.6% lower at $7.05.

WB initially dropped 2% at the open, but has since climbed 0.3% higher to trade at $13.13. Longer term, the shares have surrendered 36% since hitting a year-to-date high of $20.70 in early June. WB could continue to be in focus tomorrow, with the company slated to unveil second-quarter earnings after tonight's close.

YOKU, meanwhile, will report earnings tomorrow evening. Ahead of the event, the stock is down 3% at $17.84 -- but finding a foothold atop its year-to-date breakeven mark -- despite receiving an upgrade to "buy" from TH Capital.
 
Finally, YY is off 1.8% at $61.52 -- and is back in the red for 2015. Longer term, the shares have been wallowing beneath their 120-day moving average since early July.
 

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