In today’s volatile market, finding safe long-term stocks with consistent returns is like striking gold. Many stocks are surging short-term, but only a few carry the quality, valuation, and growth trajectory that can make them reliable for long-term investors.
Among the recent winners, Yum China Holdings (YUMC), Trip.com Group (TCOM), and Baidu Inc. (BIDU) stand out not just for today’s momentum—but for their strong fundamentals, scalable business models, and attractive valuations.
In this blog post, we dive into why these three Chinese giants deserve a place in your portfolio—even in 2025’s uncertain market environment.
Why China is Still a Land of Opportunity
Despite regulatory concerns and geopolitical tensions, China remains the second-largest economy in the world and a hub for some of the most innovative and consumer-driven companies.
- A growing middle class
- Tech-savvy younger population
- Urbanization trends
- Shift toward domestic consumption
These macro trends continue to benefit consumer, travel, and technology sectors—which our selected stocks represent perfectly.
Yum China Holdings (NYSE: YUMC): Eating Into the Future
A $19B Fast-Food Giant With Room to Grow
Yum China is the largest restaurant company in China, operating over 14,000 outlets under major brands like KFC, Pizza Hut, and Taco Bell. The company’s aggressive expansion strategy, coupled with local menu innovation, allows it to cater to both premium urban diners and budget-conscious rural customers.
Key Strengths
- Massive brand loyalty in China
- Digital integration: 90% of orders are placed digitally
- Strong balance sheet: Over $1B in free cash flow annually
- Localized supply chain for cost efficiency
Recent Performance
| Metric | Value |
|---|---|
| Price | $47.69 |
| Market Cap | $19.82B |
| P/E Ratio (TTM) | 19.98 |
| 52-Week Change | +50.82% |
| Avg. Daily Volume | 2.78M |
Yum China recently reported double-digit same-store sales growth, showing strong post-pandemic recovery.
Why Long-Term Investors Should Care
In a country with 1.4 billion people, the potential for scalable food service is enormous. Yum China is not just riding the wave—it’s leading the transformation of how China eats.
Trip.com Group (NASDAQ: TCOM): Travel Reborn
China’s Travel Tech Behemoth
Trip.com is the largest online travel agency in China, offering hotel reservations, flight bookings, vacation packages, and corporate travel management. As international and domestic travel rebound, Trip.com is perfectly positioned to capitalize on the demand surge.
Key Strengths
- Dominant market share in China and growing global footprint
- Asset-light model with high margins
- Integrated platform with AI-driven booking and recommendations
- Travel tech partnerships with airlines, hotels, and rail networks
Recent Performance
| Metric | Value |
|---|---|
| Price | $61.94 |
| Market Cap | $40.94B |
| P/E Ratio (TTM) | 18.12 |
| 52-Week Change | +18.52% |
| Avg. Daily Volume | 3.38M |
The company reported record-breaking revenues in its last quarter, driven by domestic travel boom and a strong Lunar New Year season.
Why Long-Term Investors Should Care
Travel is not a trend—it’s a necessity in a globally connected world. Trip.com’s leadership and diversified offerings make it a core holding for those betting on China’s growing middle-class consumerism.
Baidu Inc. (NASDAQ: BIDU): The Undervalued AI Powerhouse
Beyond Search: The Google of China Is Transforming
Most investors know Baidu as the “Google of China,” but today, the company is aggressively investing in AI, autonomous driving, and cloud infrastructure.
With projects like Apollo (autonomous vehicle platform) and Ernie (its ChatGPT rival), Baidu is quietly becoming a tech innovation hub in Asia.
Key Strengths
- Largest AI cloud ecosystem in China
- 60%+ market share in Chinese search engine traffic
- Strategic partnerships in robotaxi, smart cities, and AI chips
- Strong moat in machine learning and NLP (natural language processing)
Recent Performance
| Metric | Value |
|---|---|
| Price | $90.38 |
| Market Cap | $31.58B |
| P/E Ratio (TTM) | 8.91 |
| 52-Week Change | -1.82% |
| Avg. Daily Volume | 3.20M |
Despite its underperformance over the last year, the valuation is extremely attractive given its cash flow, balance sheet strength, and market leadership in AI.
Why Long-Term Investors Should Care
Baidu is undervalued and overlooked, but with AI and automation on the rise, its assets could unlock enormous value over the next decade. Think of it as the NVIDIA of China—but trading at a huge discount.
Comparison Table of the 3 Stocks
| Company | Ticker | Market Cap | P/E Ratio | 52W Change | Sector | Key Growth Driver |
|---|---|---|---|---|---|---|
| Yum China | YUMC | $19.82B | 19.98 | +50.82% | Consumer (Food) | Urban food consumption |
| Trip.com Group | TCOM | $40.94B | 18.12 | +18.52% | Travel Tech | Post-COVID travel rebound |
| Baidu Inc. | BIDU | $31.58B | 8.91 | -1.82% | AI/Tech | AI and autonomous driving |
Final Thoughts: Why Long-Term Investors Should Care
While markets remain choppy in 2025, opportunities are still abundant for investors willing to look past headlines and focus on strong businesses with:
- Competitive moats
- Market leadership
- Attractive valuations
- Long-term tailwinds
Yum China (YUMC) is feeding the future of Chinese food service.
Trip.com Group (TCOM) is redefining how China—and the world—travels.
Baidu Inc. (BIDU) is quietly leading Asia’s AI revolution.
These three companies are not only surging today—they are poised to outperform for years to come.
If you’re building a future-proof portfolio, these names deserve your attention. Add them to your watchlist—or better yet, your portfolio.
