Why KE Holdings Inc (BEKE) Is Surging In 2025
We recently published a list of . In this article, we are going to take a look at where KE Holdings Inc (NYSE:BEKE) stands against other real estate stocks that are surging in 2025.
For years, real estate stocks have been a source of anxiety for investors due to the scars of the Great Recession. That crisis has led to lingering skepticism, and many see real estate as a no-go zone today due to GDP growth turning negative quarter-over-quarter and expectations of a recession. Investors fear that a recession could drag these stocks down once more.
However, these companies have learned from the Great Recession, and some of them have delivered stellar gains so far. It is a good idea to keep an eye on the winners, as they could outperform during market downturns.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified in another article
For this article, I screened the best-performing real estate stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
Aerial shot of a modern real estate development with residential homes.
Number of Hedge Fund Holders In Q4 2024: 47
KE Holdings Inc (NYSE:BEKE) operates China's leading integrated online and offline platform for housing transactions and services, connecting buyers, sellers, renters, and service providers through its Beike and Lianjia brands.
The stock's sharp rise in 2025 is primarily driven by its March 18 announcement that its Class A ordinary shares were included in both the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect programs.
On the same day, KE Holdings reported strong fourth-quarter and full-year 2024 financial results, which included a final cash dividend.
The consensus price target of $27.26 implies 31.6% upside.
BEKE stock is up 14.90% year-to-date.
Overall, BEKE ranks 15th on our list of real estate stocks that are surging in 2025. While we acknowledge the potential of BEKE, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BEKE but that trades at less than 5 times its earnings, check out our report about this .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
HSBC Upgrades Dr. Reddy's Laboratories Limited (RDY) to Buy from Hold
On June 5, HSBC upgraded Dr. Reddy's Laboratories Limited (NYSE:RDY) from Buy to Hold, raising the price target to INR1,445 from INR1,235, citing an optimistic outlook for the company in terms of earnings potential and solid market standing. A worker at a biopharmaceutical facility packaging an active pharmaceutical ingredient. HSBC's updated estimates for FY2026 to FY2028 take into account the shifting market tide for semaglutide and gRevlimid. The analysts are waiting for semaglutide to be introduced in Canada, Brazil, and India at the beginning of FY2027, which is a greater leap from their prior hypothesis of a launch only in Canada by Q4 of FY2026. The analysts revised their FY2026 sales figures for Dr. Reddy's Laboratories Limited (NYSE:RDY)'s gRevlimid, noting the growing competition. The adjustment includes a 5.1% decrease in the EPS estimate for FY2026, while the EPS forecast for FY2027 and FY2028 grew by 12% to 13%. According to HSBC analysts, the expected surge in semaglutide sales will strengthen Dr. Reddy's earnings. HSBC assigned a new price target for RDY's American Depositary Receipts (ADR) as well, raising it from $14.44 to $16.90. Dr. Reddy's Laboratories Limited (NYSE:RDY) is a global pharma company based in Hyderabad, India, that makes both branded and generic medicines for a wide range of health conditions. The company operates through Global Generics, Pharmaceutical Services and Active Ingredients (PSAI), and Others segments. While we acknowledge the potential of RDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 hours ago
- Yahoo
UBS Upholds Buy Recommendation on Deckers Outdoor (DECK)
On June 5, UBS analysts maintained a Buy rating on Deckers Outdoor Corporation (NYSE:DECK) with a price target of $169. The analysts expect Decker's EPS to top market estimates over the coming year as sales projections increase for its Hoka brand. They also anticipate UGG to keep up its record as a major global casual footwear brand. A customer browsing a retail store, finding the perfect footwear for their casual outfits. The analysts were confident that Deckers Outdoor Corporation (NYSE:DECK) could deliver a low double-digit compound annual sales growth. They forecast that this growth could drive Deckers' forward PE ratio over 20x, compared to the present 16.7x. The $169 price target by UBS reflects a 60% upside for DECK. The stock has plummeted nearly 47% over the last six months, which signals a buying opportunity. After discussions with company management on June 4, the analysts were optimistic about Deckers Outdoor Corporation (NYSE:DECK)'s potential for growth. Despite the market showing caution with reference to the Hoka brand's capacity to sustain robust growth, UBS believes that DECK is perfectly tackling concerns about industry competition, evolving fashion trends, and dependence on Clifton and Bondi franchises. The analysts see double-digit revenue growth for Hoka in the next few years. Deckers Outdoor Corporation (NYSE:DECK) designs and markets premium footwear and apparel worldwide with brands like UGG and HOKA. The company was established in 1973 and is headquartered in Goleta, California. While we acknowledge the potential of DECK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 11 Stocks That Will Bounce Back According To Analysts and 11 Best Stocks Under $15 to Buy According to Hedge Funds. Disclosure: None. Sign in to access your portfolio
Yahoo
3 hours ago
- Yahoo
Lemonade Inc (LMND) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Challenges
Revenue: Increased 27% year-on-year to $151 million in Q1 2025. In Force Premium (IFP): Grew 27% to just above $1 billion. Customer Count: Increased by 21% to 2.5 million. Premium per Customer: Increased 4% to $396. Annual Retention Rate (ADR): Decreased to 84% from 86% in the prior quarter. Gross Earned Premium: Increased 24% to $234 million. Gross Loss Ratio: 78% for Q1, compared to 79% in Q1 2024. Adjusted Gross Profit: Improved 25% year-on-year. Net Loss: $62 million, or a loss of $0.86 per share. Adjusted EBITDA Loss: $47 million in Q1. Total Cash, Cash Equivalents, and Investments: Approximately $996 million. Growth Spend: $38 million in Q1, nearly double the prior year quarter. Technology Development Expense: Increased 5% to $22 million. General and Administrative (G&A) Expense: Increased 20% to $36 million. Warning! GuruFocus has detected 3 Warning Signs with LMND. Release Date: May 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Lemonade Inc (NYSE:LMND) reported a 27% year-on-year growth in Q1 2025, marking the sixth consecutive quarter of accelerating top-line growth. The company achieved a 25% year-on-year improvement in adjusted gross profit, despite the impact of California wildfires. Lemonade Car's quarter-over-quarter in-force premium (IFP) growth outpaced the rest of the business for the first time, signaling strong momentum. The company is on track to achieve EBITDA breakeven by the end of 2026, with expectations of generating positive adjusted free cash flow in 2025. Lemonade Inc (NYSE:LMND) has successfully leveraged AI to maintain or reduce fixed costs while significantly increasing its book size, demonstrating strong operational efficiency. The California wildfires had a notable impact on Q1 results, contributing 16 percentage points to the gross loss ratio. Annual dollar retention (ADR) decreased to 84%, down from 86% in the prior quarter, partly due to efforts to improve profitability in the home insurance book. The gross loss ratio for Q1 was 78%, slightly higher than the previous year's 79%, indicating ongoing challenges in managing claims costs. Operating expenses, excluding loss and loss adjustment expense, increased by 29% year-on-year, driven by growth spend and the impact of the FAIR plan assessment. Net loss for Q1 was $62 million, or $0.86 per share, compared to a net loss of $47 million or $0.67 per share in the prior year, reflecting ongoing financial challenges. Q: Can you elaborate on the timeline for reaching EBITDA profitability and what levers will drive this? A: Daniel Schreiber, CEO, explained that Lemonade aims to achieve adjusted EBITDA breakeven by the end of 2026, with 2027 being the first full year of positive adjusted EBITDA. The company expects gross profit to grow faster than fixed costs, driven by AI efficiencies, bringing them closer to profitability. Q: What impact did the California wildfires have on gross profit, and how are tariffs affecting your full-year guidance? A: Tim Bixby, CFO, noted that the California wildfires had a $44 million gross impact, aligning with prior estimates. The tariff impact is expected to be modest, with single-digit percentage effects on claims. Lemonade is comfortable with its full-year guidance, assuming a modest headwind from tariffs. Q: How is Lemonade's Car business performing, and what are the plans for geographic expansion? A: Daniel Schreiber, CEO, highlighted that Lemonade Car is growing faster than the rest of the business, with a focus on refining the product before expanding geographically. The company is currently available to 40% of the U.S. market and plans to expand further once the product is optimized. Q: How is AI impacting Lemonade's competitive position in the insurance industry? A: Daniel Schreiber, CEO, emphasized that Lemonade's AI capabilities allow for better data utilization and risk assessment compared to traditional insurers. The company's digital infrastructure enables it to connect data points effectively, providing a competitive advantage in pricing and customer acquisition. Q: What percentage of new car sales are cross-sales from existing Lemonade customers? A: Tim Bixby, CFO, stated that about half of new car sales are cross-sales from existing customers, up from a third previously. This trend is expected to continue, leveraging Lemonade's existing customer base for more efficient growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
