10 Best NASDAQ Stocks Under $50 to Buy

5. JD.com, Inc. (NASDAQ:JD)

Number of Hedge Fund Holders In Q2 2024: 59

Share Price: $37.99

JD.com, Inc. (NASDAQ:JD) is a Chinese eCommerce company with one of the most unique business models in the industry. It operates through a part first model by acquiring inventory at the wholesale level and then managing it through its logistics service. This offers JD.com, Inc. (NASDAQ:JD) the advantage of stable delivery times and customer satisfaction, as its customers do not have to rely on merchants to ship the inventory and they deal directly with JD.com, Inc. (NASDAQ:JD) for the returns process. As an eCommerce retailer, the keys to the firm’s hypothesis are its margins, gross merchandise volume, and merchant network. Keeping in line with a weak Chinese retail environment and economy, JD.com, Inc. (NASDAQ:JD) has been shifting its model to target low price products and by bringing small businesses and merchants to its platform. Execution of this strategy should prove important for the stock’s future performance, even as a forward P/E ratio of 7.19 indicates a significant undervaluation based on geopolitical tensions. JD.com, Inc. (NASDAQ:JD)’s dependence on the Chinese economy was clear in September as the shares surged by 14% after China announced another stimulus package to aid its flailing economy. Further additional good news on the Chinese economic front could lead to more returns.

Ariel Investments mentioned JD.com, Inc. (NASDAQ:JD) in its Q1 2024 investor letter. Here is what the fund said:

“We initiated a position in China-based technology-driven E- commerce company, JD.com, Inc. 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.”