Explosive rise in "China-related US stocks"! Check out the still undervalued & potential rising stocks! Is the main focus on semiconductor stocks?
While the US stock market remains calm, China-related stocks are surging.Is doing.China's authorities have introduced large-scale economic stimulus measures, attracting buyers.This round of rebound is noted by major securities firms to be the result of new purchases rather than short covering. In China, there are reports of the possibility of further fiscal stimulus in the future. If economic support measures continue, interest in China-related stocks may increase further.Picking up still undervalued and potentially rising "China-related US stocks".Done.
Since September 24, when the Chinese authorities announced large-scale economic support measures, the S&P500, Dow Jones Industrial Average, and Nasdaq 100 index have all dropped by 0.3%, showing signs of a calm market in the US. On the other hand, when checking the top 10 gainers and decliners of major index constituent stocks, some stocks have risen by more than 10%.
Among them, major casinos like $Wynn Resorts (WYNN.US)$ $Las Vegas Sands (LVS.US)$ have risen by more than 20%. Both companies have sales ratios in China (Macau) of around 50% and 60%, respectively. Even among other top performing stocks, Chinese-related stocks (Note) stood out.
(Note: Stocks with relatively high sales ratios in China, or resource-related stocks. In the table, marked with an asterisk, stocks that are shaded light pink throughout the cell.)
For example, major resource company $Freeport-McMoRan (FCX.US)$ and major cosmetics company $Estee Lauder (EL.US)$ Semiconductor stocks, in particular $Micron Technology (MU.US)$ $Coherent (COHR.US)$ 、 $NVIDIA (NVDA.US)$ 、 $Advanced Micro Devices (AMD.US)$ 、 $ASML Holding (ASML.US)$ etc.
MostSemiconductors generally have a high revenue proportion from China.、The benefits of China's economic recovery tend to be larger than other industries.Among the major indices falling, the SOX index is the only one in the positive territory, which may reflect expectations for China's large-scale economic stimulus package. In that sense, Semiconductor stocks are truly the top choice among Chinese-related stocks.It could be said.
(When it comes to NVIDIA, which has the highest composition ratio in the SOX index, the current major factor for the upward trend is considered to be the statement by CEO Jensen Huang that the latest AI semiconductor Blackwell is "in full production.")
Given the sharp rise in China-related stocks, there is a strong impression of anticipatory expectations, which may lead to concerns about diminishing growth potential. Therefore, we decided to check the average target stock price deviation of the China-related stocks in the table above by analysts.
The stock that is suggested to have a large upside potential from the divergence rate.is a leading player in the semiconductor memory sector. $Micron Technology (MU.US)$ and the leading-edge exposure equipment company $ASML Holding (ASML.US)$ , providing semiconductor process control solutions and inspection systems. $Onto Innovation (ONTO.US)$ , the major semiconductor manufacturing equipment company $Lam Research (LRCX.US)$ Among others, the semiconductor stocks, including the AI semiconductor champion $NVIDIA (NVDA.US)$ etcSemiconductor stocks stand out。
Semiconductor stocks have been adjusting due to concerns about a US recession and customer companies' AI monetization, leading to a high deviation from the average target stock price. The slowing of the Chinese economy is not a factor for adjustment since summer, but considering that any negative impact from it has already been factored into the stock price,In case of a reverse surprise, it could become a factor pushing up stock prices.. Excluding Lam Research, the expected PER (price-to-earnings ratio) is below the five-year average, indicating a sense of undervaluation.
In other news, the US petroleum majors $Chevron (CVX.US)$ and mining resource giants $Freeport-McMoRan (FCX.US)$ High correlation with resource prices. At present,As a result of expectations for economic recovery in China, the prices of copper and petroleum have risen.Energy stocks are strong. The rise in crude oil prices is also due to geopolitical risks stemming from concerns over the worsening situation in the Middle East. While both stocks have slightly less upside potential compared to semiconductor stocks, they can be said to have a sense of undervaluation in terms of valuation.
A leading casino company, $Wynn Resorts (WYNN.US)$ and $Las Vegas Sands (LVS.US)$ Through its subsidiary, the company operates casino and hotel business in Macau. The casino industry in Macau has a high dependence on mainland Chinese customers and is easily influenced by expectations of China's economic recovery. While the stock price has surged recently, the upside potential has decreased, but there still seems to be a sense of undervaluation from a valuation perspective.
The casino revenue in Macao and the stock prices of two casinos are relatively correlated.
There is an expectation for the recovery of Macao's casino revenue in the future.
A hotel-casino resort operator. It offers facilities such as rooms, suites, restaurants, and entertainment and leisure facilities. It operates in locations such as Las Vegas and Macau. The revenue ratio from Macau is 47.5% (fiscal year ending December 2023).
A company that owns and operates gambling and convention centers. It operates in the USA, Macau, and Singapore, providing a variety of games, entertainment, and lodging facilities. The revenue ratio in Macau is 61.7% (Fiscal year ending December 2023).
●Commodity prices and the stock prices of two major resource companies are relatively highly correlated, with commodity prices trending upwards after China's support measures.
Engaged in the production and transportation of crude oil and natural gas, as well as handling the refining, sales, and distribution of fuel. It operates worldwide.
An international natural resources company that deals with large amounts of reserves of copper, gold, molybdenum, cobalt, petroleum, gas, and other resources, which are large-scale and long-lasting in various regions.
Market analyst Julie, October 4, 2024.
Source: Created by moomoo Securities from Bloomberg
Source: Created by moomoo Securities from Bloomberg
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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HONDA N-ONE : Huh? Didn't China impose import restrictions on semiconductors? Just a statement? Has the execution not started yet?
きた932 : The USA has imposed export restrictions on China.