10 Best Affordable Stocks To Buy Right Now

6. JD.com (NASDAQ:JD)

Forward P/E Ratio as of September 16: 6.42

Number of Hedge Fund Holders: 59

JD.com (NASDAQ:JD) is a leading internet giant specializing in supply chain-based technology, offering a wide range of products, including computers, communication and consumer electronics, home appliances, and general merchandise. Although online retail remains JD.com’s primary revenue and earnings driver, the company’s logistics division is seeing significant growth, fueled by the global economic recovery.

In its second-quarter 2024 earnings, JD.com (NASDAQ:JD) showcased strong growth, reporting $40.1 billion in revenue, supported by solid performance across key business areas. Operational improvements led to a significant rise in adjusted operating income, reaching $1.6 billion, and boosting the profit margin to 5%, up from 3% the previous year. The company also saw a 29% increase in operating cash flow, totaling $6.98 billion compared to $5.43 billion the year prior.

Morgan Stanley recently reaffirmed its Equalweight rating on JD.com (NASDAQ:JD) with a price target of $28. This comes on the heels of JD.com’s announcement of a new $5 billion share buyback program, set to begin in September 2024 and run through August 2027. The buyback is expected to support the stock price, especially following Walmart’s full divestment of its JD stake.

By the end of the second quarter, 59 hedge funds held stakes in JD.com (NASDAQ:JD), according to Insider Monkey’s database.

Ariel Investments’ Ariel Global Fund discussed JD.com, Inc. (NASDAQ:JD) in its Q1 2024  investor letter, stating:

“We initiated a position in China-based technology-driven E-commerce company, JD.com, Inc. (NASDAQ:JD). The brand has long been known across the region as a superior online shopping channel due to its unique first-party model and unparalleled fulfillment service underpinned by JD Logistics. Yet, a challenging macro environment drove shares lower as shoppers began seeking bargains. In response, the company made significant investments in elevating its third-party merchant platform to enhance its variety of product offerings and price competitiveness for consumers. We believe these actions will yield an improved product mix, stronger top-line growth and margin expansion on a go-forward basis.”