10 Worst Performing Affordable Stocks Under $40

4. Tuya Inc. (NYSE:TUYA)

Share Price: $1.38

Analyst Upside Potential: 84.78%

Forward P/E Ratio: 12.37

Earnings Growth This Year: 266.70%

Number of Hedge Fund Holders: 10

Year-to-Date Decline: 39.47%

Tuya Inc. (NYSE:TUYA) is an international cloud platform service provider that specializes in the Internet of Things market. It helps businesses create and manage smart devices like smart home products, by offering a range of cloud-based services and tools. The cloud platform provided by the company allows device connection, data analytics, and automation tasks, meaning that once the is connected to the cloud it can be remotely operated to interact with other connected devices.

One of the differentiating factors of Tuya Inc. (NYSE:TUYA) is that it enables businesses to develop their own IoT solutions thereby reducing costs for the businesses it caters to. The stock has been down 39.4% over a year-to-date basis and is one of the worst performing affordable stocks under $40.

But there is another side to the story as well, the company’s fiscal second quarter of 2024 came in with some key financial highlights that might change the bearish sentiment. Tuya Inc. (NYSE:TUYA) has been posting consecutive quarters of year-over-year growth for quite some time now. The recent quarter was no different, its revenue grew 29% year-over-year to reach $73.3 million with net profit margins at 28% indicating a significant increase over the previous year.

It seems that the management has been focused on improving its operational efficiency as the company made $7.4 million through its operational profits during Q2, up from $6.4 million during the comparable quarter last year.

With a vast network of IoT developers spanning more than 200 countries, Tuya Inc. (NYSE:TUYA) was able to service 3,000 customers in the latest quarter. Hedge funds are also showing interest in the company, it was held by 10 hedge funds in Q2 2024, with total stakes worth $6.39 million.