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XPEV—Great Global Stock to Diversify Your Portfolio

@kookieman
$XPeng Inc.(XPEV)$ XPeng(XPEV): Strong growth in vehicle deliveries to sustain with new model launches. International expansion will also support growth. Diversification of a portfolio can be in the form of exposure to different sectors of the economy. Investors also diversify by holding high-beta (growth stocks) and low-beta (income stocks) names in the portfolio. Another diversification strategy is to consider exposure to global stocks. Data indicates that U.S. large-cap stocks have delivered anaverage annual returnof 6.4% between 1970 and 2021. For the same period, international large-cap stocks have returned 7.5%. This data underscores the importance of a globally diversified portfolio. There is another interesting piece of data that supports the view of relatively higher exposure to global stocks in 2022 and beyond. Since 1975, theout-performance cyclefor U.S. versus international stocks has lasted an average of 7.8 years. Currently, the U.S. stock out-performance cycle has lasted 10.8 years. There is a case for a reversal in trend where international stocks out-perform in the next few years. ETF Action’s Mike Akins backed this view. According to Akins, “from an allocation perspective, there has been ahuge migration into U.S. assets.” However, “we’re already seeing early evidence of that trend starting to change.” With these factors in consideration, it’s important to have a portfolio of global stocks. XPeng (XPEV) I believe thatXPeng(NYSE:XPEV) is likely to be among the long-term out-performers from the Chineseelectric vehicle(EV) industry. The stock has remained depressed with a downside of 23% in the last 12 months. This looks like a good opportunity to accumulate. One reason to be bullish on XPEV stock is the company’s robust growth trajectory. For 2021, XPengreported vehicle deliveriesof 98,155. On a year-over-year (YOY) basis, deliveries surged by 263%. It’s very likely that deliveries growth will remain strong in 2022 and 2023. In October 2021, XPeng launched its P5 sedan for mass deliveries. The impact of the new model on deliveries growth will be seen through 2022. Additionally, the company will commence deliveries of its G9 SUV in the third quarter of 2022. For the coming year, the G9 will boost growth. It’s also worth noting Xpeng is looking at aggressive expansion in Europe. The G9 SUV is targeted toward international markets with features that include Xpeng’s Xpilotsemi-autonomous driving systemand lidar technology. XPeng is also interesting in the long-term considering the aspect of innovation. HT Aero, an affiliate of XPeng, is working on thedevelopment of flying cars. The flying car, which can also operate on roads, is expected to be rolled out in 2024. Overall, XPEV stock looks attractive and a breakout on the upside is imminent. It’s also among the top picks for global stocks to buy and hold. source: Investor Place
XPEV—Great Global Stock to Diversify Your Portfolio

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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