Trading high-momentum stocks can certainly be one of the most lucrative investment strategies to pursue. On the other hand, you need to be very skilled and disciplined to avoid getting caught in potentially catastrophic losses if a position starts to lose steam. Timing of your entries into momentum stocks is key, as is managing your risk with a high degree of accuracy. The good news is that in the current market environment, plenty of stocks are heading higher on strong momentum. Whether it’s news catalysts or market trends sending these stocks higher, it’s safe to say that there are lots of great momentum opportunities for investors and traders to explore at this time.
This is particularly true for many Chinese stocks, thanks to plenty of bullish sentiment from investors. With vaccine rollouts improving the perception of an economic recovery in China, we are seeing tons of money pour into Chinese companies to start the year. If you are interested in these types of stocks, keep reading below as we provide details on 3 Chinese stocks with strong momentum.
Up Fintech Holding Limited (NASDAQ:TIGR)
After all of the recent events in the market, many investors are probably not very excited to hear the word “Robinhood” when used to describe a possible investment. However, this company has been dubbed the “Robinhood of China” and the stock has been showing some serious strength in 2021. Up Fintech Holding Limited, also known as “Tiger Brokers” in Asia, is a leading online brokerage firm that focuses on global Chinese investors. It offers a trading platform that allows users to trade in equities and other financial instruments on multiple exchanges around the world.
Back in November, the company reported Q3 revenue of $38 million, which was a 148.2% year-over-year increase. It’s also worth noting that Up Fintech Holding Limited reported a profit in Q3 with net income coming in at $4.9 million. The company went public back in April 2019 and the stock recently took out its post-IPO highs. Up Fintech Holding Limited is up over 133% year-to-date and continues to show strong momentum even after a massive rally, making it a stock worth watching going forward.
Daqo New Energy Co (NYSE:DQ)
Another Chinese stock with a lot of momentum is Daqo New Energy Co, a company that is a leading manufacturer of polysilicon, which is used in the global solar photovoltaic (PV) industry. This material is processed into things like ingots, wafers, cells, and modules for solar power solutions. We know that the solar industry has been a bright spot in the market lately, and the fact that Daqo is riding that trend along with the bullish sentiment in Chinese names makes it a strong option for momentum traders.
The company is seeing growth in several regards, as in Q3 it reported $125.5 million in revenue, representing a year-over-year increase of 49.6%. Net income for Daqo is also heading in the right direction, as the company reported a 766% sequential increase in that figure to $20.8 million in Q3. The stock is up over 85% year-to-date and is worth keeping an eye on in 2021.
Last on our list is Bilibili, a Chinese entertainment company that had a truly impressive 2020. It’s clear that this company’s business model benefitted from the global pandemic, but there are plenty of reasons to believe that it might just be getting started in terms of growth. A big reason why this company is benefitting from strong momentum has to do with its unique business model. The company generates the majority of its revenue from its mobile gaming division, but it also has an advertising segment, live broadcasting and value-added services segment, and an e-commerce platform.
In Q3, Bilibili saw total net revenues increase by 74% year-over-year and average monthly active users increase by 54% to 197.2 million. The stock took off at the end of 2020 and ended the year up 288%. Bilibili is already off to a great start in 2021 and has risen 37% year-to-date. Investors are eagerly anticipating the company’s Q4 earnings results that will be announced on February 25th, which could be another catalyst that sends shares higher.
Before you consider UP Fintech, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and UP Fintech wasn't on the list.
While UP Fintech currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.
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