KraneShares CSI China ETF (KWEB)
Price target: 34.00-35.00
Second PT: 39.00-41.00
With more than 250 firms listed on the U.S. market, Chinese stocks contribute $1.1 trillion in market cap. These companies span sectors like technology, finance, and industrials…our focus on this trade is in Chinese internet and technology stocks. Chinese internet stocks are trading at a significant discount to their 5 year averages. While U.S. tech is priced for perfection, China tech is priced for "cautious recovery." If the "earnings re-rating" predicted for 2026 (+36% EPS growth) actually happens, these multiples could expand rapidly.
A Focus on the Brand Chinese Internet and Technology Boom:
Rather than choosing a single stock, we’re focusing on the exchange traded fund (ETF) to gain exposure to a handful of these stocks. $KWEB’s top holdings include: Tencent, Alibaba, PDD, JD, Baidu, and more (you can look up the full list). Alibaba and Baidu in particular are among the top players in its holdings. Both companies created their own AI models that are now globally competitive, turning from e-commerce and becoming a AI infrastructure play.
How is China Doing?
China is experiencing a “two speed economy” right now. Q1 2026 GDP grew at 5%, beating expectations. However this is largely driven by manufacturing and tech exports. Domestic consumer is sluggish, which hurts the e-commerce side of the business…impacting players like Alibaba and JD (something to keep in mind…it’s not ALL rosy).
Despite the sluggish consumer spending, China tech pivot does suggest it’ll become a major AI infrastructure player too (they can’t afford NOT to). Alibaba’s Qwen model and Baidu’s ERNIE models are just the start.
Trump-Xi Meeting:
The U.S. and China officials will hold a meeting soon to discuss trade. This could be a positive catalyst for a lot of different industries on the market (which we’ll cover in a separate analysis). But for this particular trade, we’re particularly listening for agreements on chip exports. If the U.S. loosens export rules to China, it could rapidly allow them to become an AI powerhouse, supporting the bull case on this trade.
The P/E Discrepancy:
So, if Chinese companies are so powerful, then why do they trade at such a discount compared to U.S. companies? KWEB’s forward P/E is currently 13x, while the S&P 500 sits at 21-23x. Although Chinese companies are very strong and generate billions in revenue, American investors have typically paid “less” for them because of geopolitical risks, China’s regulations, , currency fluctuations…etc.
Nonetheless, at a 40% discount to the U.S. market, and with China’s recent pivot to prioritize technology self reliance, a small to medium position in $KWEB can give access to a clearly undervalued market.
Please note that the stock includes risks and price targets are subject to change based on market developments and company updates. These stocks usually take time to come around and the outlook may change. Trade at your own risk.
Boeing (BA)
Current: 224.00 (Will probably will until after earnings to decide on entry)
Price target: 245.00-250.00
Second PT: 275.00-285.00
Investors who bought shares of Boeing three years ago are breaking even on their investment right now, which could be frustrating, especially given Boeing turnaround in recent years. Boeing has recently surpassed Airbus in quarterly deliveries for the first time in years (143 vs 114 in Q1 2026). Its backlog is massive, and the 737 MAX production is finally stabilizing toward 47-52 units per month. The company’s 787 Dreamliner and upcoming 777x (projected for 2027) are also acting as massive drivers to the company’s outlook.
Boeing’s Reach
Moreover, Boeing doesn’t just make commercial planes. The company also produces higher jets, tankers, helicopters, and works on massive space projects like NASA’s Space Launch Systems (Artemis II). The company’s Global Services has also become their most consistent profit maker, providing parts, maintenance, and data analytics to airlines and militaries globally.
Backlog and Financials
With more than 6,000 aircraft valued at $567 billion sitting on their backlog, Boeing has about 10 years of guaranteed work. This gives investors a clear runway and visibility into the future, but running a plane company is complex and expensive. Recent years have not been good to Boeing…the company faced scrutiny due to safety concerns with the 737 Max upon rollout. This plagued the company for years, reputation wise and financially. However, their success in Artemis II is a major boost in confidence, plus they finally posted positive net income last year, their very first in more than six years.
Opportunity & Risk
Boeing’s biggest upcoming opportunity is more political than it is specific to them. China and the U.S. are set to hold trade negotiations soon, and Boeing is likely to be a major topic. Trump wants China to purchase more planes (exports help boost our economy / GDP), probably in exchange for looser chip exports. But this also comes at a risk, if no deal is made and China doesn’t buy, it may impact Boeing in the near term.
Investors should also consider that although 2025 was a profitable year, Boeing is still trading at a very high price to earnings ratio (90x), the ONLY reason this could be justified is Boeing’s strong outlook…however that puts pressure on the company to perform well. Biggest financial focus going forward is their profitability and ability to regrow their free cash flow…if they can do that, the stock is set for a comeback and three year breakout.
Please note that the stock includes risks and price targets are subject to change based on market developments and company updates. These stocks usually take time to come around and the outlook may change. Trade at your own risk. 
Hyper Stocks Pro Members Only
This company sits at the center of stealth tech, nuclear modernization, and next generation warfare systems…making it one of the most important companies in global defense, and it’s a core infrastructure play on U.S. national security...unlock full analysis in Hyper Stocks Pro.
Hyper Stocks Pro Members Only
This company sits at the center of stealth tech, nuclear modernization, and next generation warfare systems…making it one of the most important companies in global defense, and it’s a core infrastructure play on U.S. national security...unlock full analysis in Hyper Stocks Pro.
Hyper Stocks Pro Members Only
This company sits at the center of stealth tech, nuclear modernization, and next generation warfare systems…making it one of the most important companies in global defense, and it’s a core infrastructure play on U.S. national security...unlock full analysis in Hyper Stocks Pro.
Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of capital. Always conduct your own research or consult with a licensed financial advisor before making investment decisions.
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