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

Market Cap: $56.5 billion

FWD PE Ratio: 8.7

Average Price Target Upside: 44.15%

JD.com, Inc. (NASDAQ:JD) is a technology and service provider centered on supply chains in China. The company offers a wide range of products, including electronics, home appliances, groceries, personal care items, pharmaceuticals, and more. It also supports third-party merchants with online marketplace services, marketing, and omni-channel solutions.

The company manages logistics facilities, offers real estate services, and provides technology-driven supply chain solutions. Additionally, the company supports enterprise digitization through integrated technology and data solutions. JD.com (NASDAQ:JD) reported its earnings on November 14, posting a non-GAAP EPADS of $1.24 and revenue of $37.1 billion, outperforming the estimates by $0.20 and $1.02 billion, respectively. The company experienced a sell-off after earnings.

However, Barclays considers the sell-off unjustified as reported by The Fly on November 17. The firm views the company’s Q3 results as strong, highlighting management’s optimistic outlook. The firm believes that the sell-off was unwarranted especially after JD.com (NASDAQ:JD) repurchased over 8% of its shares this year.

Positive factors include accelerating revenue growth, improving monthly trends in Q3, better-than-expected gross and operating margins, and a focus on shareholder returns. Barclays maintained an Overweight rating with a $50 price target.

Ariel Investments stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q3 2024 investor letter:

“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People’s Bank of China’s (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company’s retail operations. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company’s strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.”