10 Cheap NASDAQ Stocks To Invest In Now

3. JD.com, Inc. (NASDAQ:JD) 

Forward Price to Earnings Ratio: 10.01

Earnings Growth: 24.10%

Number of Hedge Fund Holders: 59

JD.com, Inc. (NASDAQ:JD) is one of the leading e-commerce companies in China that specializes in online retail and marketplace operations. The company operates through multiple segments including JD Retail, Logistics, and New Businesses.

It generates a great chunk of its revenue, around 90% from its Retail segment. One of the competitive edges of JD.com, Inc. (NASDAQ:JD) lies in its ability to generate record revenues from its retail operations. Over the past 10 years the company has grown its top line by 28.59%.

While Retail remains one of the major contributors to revenue, the company has also developed its Logistics segment by adding new warehouses and delivery network channels to its portfolio. JD.com, Inc. (NASDAQ:JD) released its third-quarter results for fiscal 2024 on November 14, indicating year-over-year revenue growth of 5.1% and net income growth of 47.8% during the same time. Management attributed revenue growth to the rebound in the growth of electronics and home appliances.

Moreover, during the quarter the company also played an important role in China’s trade-in program, which is a government initiative aimed at stimulating consumer spending and promoting economic growth through the replacement of old goods with newer, more efficient products. The program encompasses a wide range of sectors, including automobiles, home appliances, and industrial equipment. JD.com, Inc. (NASDAQ:JD) was able to contribute to the program through its leading supply chain capabilities and fulfillment infrastructure. Moreover, as per the company’s corporate blog, it will invest approximately $420 million to further improve subsidies and services for customers trading in used home appliances and goods. Overall, the Retail segment of the company grew 6% year-over-year and the Logistics segment grew 7% during the same time.

JD.com, Inc. (NASDAQ:JD) is one of the cheapest NASDAQ stocks to invest in now. It is trading at a 47% discount to its sector.

Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its first quarter 2024 investor letter:

“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.”