Beijing-based JD.com Inc. (NASDAQ: JD) is China’s second-largest e-commerce company. Shares have dropped by nearly 25% over the past 12 months. JD.com’s fintech business, JD Tech, is still waiting to hold an initial public offering in Hong Kong. Another overhang going forward is JD’s massive $1.5 billion price war with its Chinese rivals. Called a subsidy campaign, customers will find lower prices on virtually every category of goods sold by JD. The company has committed to a long-term lower-price future.

Of 39 analysts covering the stock, 35 have a Buy or Strong Buy rating. At a recent price of around $48.00 a share, the stock’s implied upside based on a median price target of $81.42 is nearly 70%. At the high price target of $102.37, the upside potential is 113.3%.

Analysts expect JD.com to report fourth-quarter revenue of $42.29 billion, up 23.5% sequentially but down 2.6% year over year. Adjusted EPS are expected to come in at $0.50, down 43.2% sequentially and 42.9% higher year over year. For the full 2022 fiscal year, EPS are forecast at $2.37, up 40.1%, on sales of $151.02 billion, up 0.9% year over year.

JD.com stock trades at 19.9 times expected 2022 EPS, 16.1 times estimated 2023 earnings of $2.94 and 12.5 times estimated 2024 earnings of $3.77 per share. The stock’s 52-week range is $33.17 to $69.43, and the company does not pay a dividend. Total shareholder return over the past year is negative 20.23%.

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KE Holdings

KE Holdings Inc. (NYSE: BEKE) is a Beijing-based online real estate brokerage. The share price is up about 31% over the past 12 months. Virtually all that growth has come in 2023. Lifting the strict COVID-19 lockdowns boosted the fortunes of the stock among hedge fund managers. The shares saw the second-largest gain in hedge fund activity (behind only Tesla) in the first two months of this year.

Of 18 analysts covering the stock, 17 have a Buy or Strong Buy rating and the other has a Hold rating. At a share price of around $19.00, the stock’s implied upside based on a median price target of $23.09 is about 21.5%. At the high price target of $30.94, the upside potential is 105.5%.

Analysts expect KE Holdings to report fourth-quarter 2022 revenue of $2.37 billion, down 4.0% sequentially and by 15.4% year over year. EPS are pegged to come in at $0.08, down 63.7% sequentially but up from EPS of $0.01 in the year-ago quarter. For the full 2022 fiscal year, EPS are forecast at $0.25, down 18.8%, on sales of $8.58 billion, down 32.5% year over year.

KE Holdings stock trades at 77.2 times expected 2022 EPS, 29.2 times estimated 2023 earnings of $0.65 and 25.4 times estimated 2024 earnings of $0.75 per share. The stock’s 52-week range is $7.31 to $21.08, and the company does not pay a dividend. Total shareholder return over the past year is around 38%.