10 Most Promising Low-Cost Stocks According to Hedge Funds

5. Alibaba Group Holding Limited (NYSE:BABA)

Number of Hedge Fund Holders: 91

Forward P/E Ratio as of October 13, 2024: 12.43

Alibaba Group Holding Limited (NYSE:BABA) ranks fifth on our list of the most promising low-cost stocks according to hedge funds. It is a technology and internet retail company that operates e-commerce sites that serve consumers and small business owners. In addition to e-commerce, Alibaba Group (NYSE:BABA) is also involved in cloud computing, logistics, digital media, and entertainment.

Its most popular business-to-consumer online retail site, AliExpress, is home to all sorts of items including appliances, office equipment, home improvement products, and sports equipment. It has over 150 million users and is present in 190 countries. Overall, Alibaba’s (NYSE:BABA) platforms are used by more than 800 million people worldwide.

During the fiscal first quarter of 2025, Alibaba Group Holding Limited (NYSE:BABA) logged $34.7 billion (RMB 243.3 billion) in revenue, up by 4% year-over-year. The company drives its revenue by offering premium customer shopping experiences at the lowest price possible.

Despite geopolitical headwinds, the company’s market share continues to grow. According to the DBS bank, Alibaba Group Holding Limited (NYSE:BABA) currently has a 40% share of the Chinese e-commerce market. The company also leverages artificial intelligence to enhance its cloud solutions and improve the buying and selling experience.