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JD.com (NasdaqGS:JD) is making headlines as it aims to expand into Hong Kong’s insurance sector, even as recent regulatory moves affect its digital asset projects in the region. These changes offer fresh insight into the company’s evolving strategy and challenges.

See our latest analysis for JD.com.

JD.com’s latest push into insurance comes at a pivotal moment for the stock. Despite steady innovation and expansion, momentum has faded over the past year, with shares closing at $33.19 and a -14.4% total shareholder return. Looking further back, long-term holders have faced deeper losses. Investors are now weighing how JD.com’s strategic shifts and regulatory headwinds might reshape its outlook.

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The question now is whether JD.com’s recent share slump signals a compelling value opportunity or if the market is already factoring in the company’s future growth potential. Could this be a turning point for investors?

With the narrative’s fair value target sitting at $45.12, substantially above JD.com’s last close, there is a significant gap in how analysts and the market are currently pricing the company. This disparity is setting the stage for an intriguing debate about JD.com’s future prospects and the underlying growth story.

Diversification into high-growth and synergistic businesses, especially food delivery, general merchandise, and international retail, are driving new user cohorts, accelerating cross-selling, and establishing new revenue streams, which should underpin top-line growth and gradually improve Group-level net margins as these businesses scale.

Read the complete narrative.

Curious what’s fueling that bullish outlook? The narrative hinges on a powerful combination of revenue acceleration, margin expansion, and a future earnings multiple usually reserved for mature industry leaders. Want to know the precise projections guiding this premium price? Dive in to discover what assumptions drive the analysts’ valuation and see if they could reshape your entire perspective on JD.com.

Result: Fair Value of $45.12 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, intensifying competition in food delivery and persistent margin pressure could quickly test whether this optimistic outlook holds true for JD.com.

Find out about the key risks to this JD.com narrative.

If you’re not convinced by the consensus or want to put your own spin on the story, you can craft your own view in just a few minutes, and Do it your way.

A great starting point for your JD.com research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Smart investors always keep their eyes open for what’s next. Don’t let a great opportunity pass you by. Put the power of the Simply Wall St Screener to work and spot the market’s most promising ideas before the crowd catches on.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include JD.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Gold prices rallied hard amid the chaos of the reciprocal tariff roll-out in early April. Once that episode was over, they went into a holding pattern and stayed there until Chair Powell’s dovish speech at Jackson Hole on August 22, which unleashed a true frenzy of precious metals buying. The IMF/WB annual meetings burst that bubble and precious metals prices have gone back into the same holding pattern they went into once the April tariff shock had worn off. However, my sense is that the underlying drivers of the “debasement trade” are only getting stronger, so that will keep going.

In today’s post, I lay out how markets might evolve now that the “gold rush” of recent months has ended. Needless to say, forecasting is a dangerous business and I’ll likely be wrong on many fronts. But I feel strongly that the “debasement trade” is here to stay and will only build over the medium term. If that is true, the question then becomes where this trade will pop up next. Will it again be in precious metals, in longer-term yields, in equities or in currencies? I discuss all this in today’s post.

• Why the “debasement trade” will build: the Fed is cutting as underlying inflation rises. The “debasement trade” is about the fear that central banks will bend to the will of politicians and monetize unsustainable government debt levels. Some of this “fiscal dominance” is already playing out in the US. The left chart below shows the drivers of monthly core CPI inflation (black line). My preferred measure of underlying inflation – what inflation is after you filter out all the noise – is the blue bars, which have trended up for half a year. That just isn’t an environment where the Fed should be cutting, let alone be in a substantial easing cycle. The blue line in the right chart below shows that markets price almost five 25 basis point rate cuts between now and the end of 2026. The fact that the Fed isn’t pushing back on this market pricing understandably raises questions about its credibility and is one reason why longer-term Treasury yields (the red line in the right chart below) remain high even as more and more Fed cuts get priced.

• Why the “debasement trade” will build: fewer safe haven assets. I’ve been banging on about how safe haven countries like Japan or Germany are losing that status. Indeed, there are many places across the G10 where fiscal policy is unsustainable, not just in the US. This is why the Dollar was stable in the course of the precious metals rally in recent months, as the blue line in the left chart below shows. The debasement trade isn’t about the US, it’s about a much broader loss of confidence in fiat currencies. The Japanese Yen would have been a key place to hide in the past, but the blue line in the right chart below shows that’s tumbling against the Dollar. The safe havens of today are Switzerland (black line), Sweden (red line) and Norway (orange line). Unsurprisingly, these are places where government debt is low because fiscal policy hasn’t become unmoored.

• Where will the “debasement trade” pop up next? Precious metals are back in the same holding pattern they were in after the April tariff shock wore off. Longer-term bond yields are in a similar holding pattern as markets price more and more rate cuts for G10 central banks, which is pulling long-end yields down for now. Perhaps the best “debasement trade” currently is the S&P 500, which is up over 15 percent so far this year. President Trump frequently looks to the stock market as validation of his policies. The S&P 500 won’t be allowed to fall. What will also not fall is the Dollar, which – as the left chart below shows – has been stable since its sharp fall in April. So much “bad news” is priced into rate differentials, which have moved massively against the Dollar, that the only way for the greenback is up. Indeed, over the past few weeks, I’ve heard more and more talk of a return of “US exceptionalism.” Sentiment on the Dollar is changing for the better.

American Express (AXP) recently posted impressive third-quarter earnings, which has driven a fresh wave of market optimism. The company has raised its full-year revenue and EPS guidance. This decision signals management’s upbeat outlook on ongoing business momentum.

See our latest analysis for American Express.

American Express shares have rallied this year, recently closing at $357.56 after a series of upbeat announcements, including stronger-than-expected third-quarter results, the launch of a refreshed platinum card, and a successful $2 billion bond offering. With a 19.8% share price return so far in 2025 and an impressive five-year total shareholder return of 316.9%, momentum appears to be building as the company doubles down on premium products and deepens its moat.

If you’re curious to see what else is delivering outsized growth lately, now’s the perfect time to explore fast growing stocks with high insider ownership

With American Express stock hovering near all-time highs after stellar results, investors may wonder if the recent rally has left little room for upside, or if there is still a compelling opportunity to buy before further growth is fully priced in.

With American Express’s fair value currently pegged below the last close, the most popular narrative points to the shares trading at a premium. The story behind this valuation involves both the company’s track record and its future growth blueprint.

“Sustained momentum in acquiring younger (Millennial and Gen Z) cardholders, with these groups showing strong spend growth and lower delinquency rates compared to industry averages, suggests a successful strategy in capturing the next generation of affluent consumers, which should drive future billed business and support earnings stability.”

Read the complete narrative.

Want to know what powers this rich price tag? The narrative revolves around bold, double-digit top-line projections, robust profit margins, and a future earnings multiple that tops industry norms. Find out which financial levers analysts are betting on, and whether they are realistic or too optimistic.

Result: Fair Value of $338.24 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, there are still clear risks, including intensifying competition and shifting consumer payment preferences, which could challenge American Express’s premium growth trajectory.

Find out about the key risks to this American Express narrative.

Looking at American Express through the lens of its price-to-earnings ratio paints a mixed picture. Although it trades at 23.7x earnings, this is lower than similar peers averaging 29.4x. However, it is notably higher than the broader industry average of 10.1x and above the fair ratio of 21.5x analysts believe the market could eventually reflect. This gap suggests investors are paying a premium for quality and track record, but also raises questions about potential downside if growth expectations are not met. Is the premium justified, or is caution warranted?

See what the numbers say about this price — find out in our valuation breakdown.

If you see things differently or want to dig into the numbers on your own, there’s nothing stopping you from drawing your own conclusions in just a few minutes, and Do it your way

A great starting point for your American Express research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include AXP.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Kirin Holdings Company (TSE:2503) shares have edged higher over the past month, drawing attention from investors interested in the food and beverage sector. The stock’s upward trend raises questions about what is driving recent sentiment.

See our latest analysis for Kirin Holdings Company.

Kirin’s share price has climbed 11.3% over the past three months, reflecting a wave of renewed optimism about its growth outlook, while the total shareholder return over the past year sits at 1.5%. Investors watching this steady uptrend may be sensing improving fundamentals and a potential rerating on valuation, especially as the sector sees pockets of positive momentum.

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The question now is whether Kirin’s recent rally still offers attractive value for new investors, or if the market has already factored in the company’s potential for future growth. Is there a buying opportunity left?

Kirin Holdings trades at a price-to-earnings ratio of 33.4 times, which is notably higher than both its industry average and the fair multiple suggested by valuation models. The current share price of ¥2,221.5 puts this premium in focus.

The price-to-earnings (P/E) ratio measures how much investors are willing to pay for each unit of the company’s earnings. For an established food and beverage group like Kirin, this number reflects market expectations for profit stability, future growth, and sector competitiveness. However, such a high P/E raises the question of whether recent optimism is running ahead of underlying performance.

Compared to the Asian Beverage industry average of 19.6x, Kirin’s stock is expensive. It also exceeds the company’s own estimated fair P/E of 30.5x, suggesting the stock could be priced for stronger growth or efficiency gains than currently forecast. If expectations reset, the market could drive the multiple closer to this fair ratio in the future.

Explore the SWS fair ratio for Kirin Holdings Company

Result: Price-to-Earnings of 33.4x (OVERVALUED)

However, slower revenue growth or shifts in market sentiment could quickly cool enthusiasm and put downward pressure on Kirin’s current valuation premium.

Find out about the key risks to this Kirin Holdings Company narrative.

While Kirin looks expensive based on its price-to-earnings ratio, the SWS DCF model offers a very different takeaway. According to this approach, the stock is trading at a steep 60% discount to its estimated fair value of ¥5,552.77. This suggests that, even after its recent run, the market may be overlooking longer-term cash flow potential. Could investors be underestimating Kirin’s future growth, or is there something the DCF is not capturing?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Kirin Holdings Company for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you have a different perspective or want to draw your own conclusions, you can easily explore the details and build your own story in just a few minutes. Do it your way

A great starting point for your Kirin Holdings Company research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.

Don’t limit your research to just one stock. There could be opportunities waiting in sectors others haven’t noticed. Use these targeted screens to spot winners before the crowd:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 2503.T.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Alphabet (NASDAQ:GOOGL) shares are up 51% over the past 12 months. But that’s nothing compared to many of the stocks in my quantum computing watchlist. Several of them are up more than 1,000%.

So, why am I talking about Alphabet and quantum computing?

Well, if you’ve been following this rather exciting sector you’ll know that Alphabet — the parent company of Google — is advancing its own quantum technologies, and it’s doing rather well.

Pure-play quantum computing stocks have been in vogue over the past 12 months, but they’re small companies, with relatively short pockets, and often no cash flow.

Alphabet on the other hand is a technology giant. Among other pros, it’s has a huge net cash position of over $50bn. I think its pockets are so deep that it could buy all of the pure-plays and have money left over.

Google’s recent demonstration of verifiable quantum advantage (doing something faster than a supercomputer) with its Willow chip and the Quantum Echoes algorithm is a milestone for quantum computing.

The experiment showed that complex simulations — such as molecular modelling — could be performed thousands of times faster than on the world’s fastest classical supercomputers.

From an investment perspective, this is important because it signals that quantum computing is moving from theory to practical application. In fact, Alphabet believes we will see real-world applications of quantum computing in the next five years.

Companies leading in this space are building a technological and competitive advantage that could one day open up opportunities in pharmaceuticals, materials science, and optimisation problems.

Early adoption could translate into faster innovation cycles and new revenue streams. For investors, breakthroughs like this highlight the potential of quantum technologies to reshape industries and generate long-term value.

For now, I don’t believe Google’s quantum computing achievements are really reflected in the share price. Which is strange because some of the pure-play quantum stocks are trading at ridiculous valuations.

However, if Alphabet continues to deliver these updates as we move towards a real-world application, I have no doubt that it will be reflected in the share price.

Personally, I believe Alphabet is among the best value mega-cap stocks. It’s often wrongly compared with communications peers when it’s really a technology giant.

Looking at the figure, the stock is currently trading around 26 times forward earnings. That’s broadly in line with the information technology sector average.

However, it’s expected to grow earnings by around 16% annually over the medium term, leading to a price-to-earnings-to-growth (PEG) ratio around 1.5. That’s a 15% discount to the information technology sector average.

Concerns? Well, there’s always the impact of AI on Google’s search dominance. Some analysts were concerned that ChatGPT’s Altas programme may undermine Google’s dominance — I’m not sure myself.

Nonetheless, it’s definitely worth considering. It’s well-valued and has many strings to its bow.

The post Looking to beat the market? Quantum computing could lift Alphabet shares even higher… appeared first on The Motley Fool UK.

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James Fox has positions in Alphabet. The Motley Fool UK has recommended Alphabet. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Bank of China.

Our Excess Returns analysis suggests Bank of China is undervalued by 53.8%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

The price-to-earnings (PE) ratio is a favored valuation tool when assessing profitable companies like Bank of China, because it directly relates a company’s market price to its earnings power. A lower PE can signal that a stock is undervalued relative to its profitability, while a higher PE suggests higher market expectations for future growth or increased risk.

Growth outlooks and risk perception both play a role in what is considered a standard or “fair” PE. Companies with higher, more reliable growth tend to warrant higher PEs, while firms in riskier or slower-growing environments usually see lower multiples. Currently, Bank of China trades at a PE of 5.79x. This is below both the peer average of 6.66x and the banking industry average of 6.00x, indicating that the market prices the company more conservatively than many of its rivals.

Simply Wall St’s proprietary “Fair Ratio” refines the idea of appropriate valuation. The Fair Ratio for Bank of China stands at 6.71x, factoring in the company’s unique growth, risks, profit margins, and scale. This serves as a more holistic gauge than simple peer or industry comparison, as it accounts for detailed company-specific financials as well as broader sector dynamics.

Compared to its Fair Ratio, Bank of China’s current PE is just 0.92x lower. This places it very close to what would be considered fairly valued based on the company’s fundamentals and future prospects.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your own story or viewpoint about a company, connecting your beliefs about its future growth, profitability, and risks to a clear financial forecast and a fair value estimate. Narratives link the numbers to real-world drivers by allowing you to explain why you think Bank of China’s value will move in a certain direction and compare that story to other investors’ perspectives.

Available right on Simply Wall St’s Community page and trusted by millions of investors, Narratives are quick and easy to use. You can write your case for why Bank of China’s digital innovation, international reach, or economic risks will impact its future, then instantly see how your fair value stacks up against the market price and other users’ forecasts. When new earnings or news are released, Narratives update automatically, keeping your story relevant and actionable. For example, some investors see Bank of China’s urbanization push and digital payments strategy unlocking long-term value, leading to price targets as high as HK$5.90. Others remain cautious about risks like low interest rates and assign a price as low as HK$2.79, highlighting how Narratives can clarify decisions about buying or selling at any time.

Do you think there’s more to the story for Bank of China? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 3988.HK.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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