12 Best Performing Cheap Stocks in 2024

04. Alliance Entertainment Holding Corporation (NASDAQ:AENT)

Number of Hedge Fund Holders: 2

Year to date Share Price Gain: 179.03%

Forward Price to Earnings (P/E) Ratio: 7.40

Alliance Entertainment Holding Corporation (NASDAQ:AENT) operates as a global wholesaler, retailer, distributor, and e-commerce provider for the entertainment industry. Its diversified product offerings include vinyl records, video games, DVDs, Blu-rays, toys, and consumer electronics. As a leading direct-to-consumer and business-to-business supplier, Alliance Entertainment Holding Corporation (NASDAQ:AENT) has built strong relationships with major retailers like Walmart, Amazon, and Target.

The company reported a robust financial performance in its fiscal year ending June 30, 2024, achieving annual revenue of over $1.1 billion, with more than $250 million generated from exclusive distribution deals. This revenue was largely driven by its strategic partnerships with prominent brands such as Walt Disney, Sony Pictures, Microsoft, and Universal Music. Additionally, the company has successfully expanded its market reach, serving over 35,000 storefronts across 72 countries. This extensive global footprint, combined with exclusive licensing agreements, creates a competitive advantage that safeguards its leadership position in the entertainment distribution market.

Alliance Entertainment Holding Corporation (NASDAQ:AENT) efficient cost management initiatives have also contributed to its success. The implementation of the AutoStore automated storage and retrieval system in its Kentucky warehouse has significantly lowered fulfillment costs by streamlining operations. The company reduced its labor costs and increased storage capacity, resulting in an annual cost reduction of approximately $0.9 million. Additionally, the introduction of the Sure Sort X system from OPEX in fiscal Q3 2024 led to immediate savings of $0.5 million and is projected to generate an additional $400,000 in annual savings moving forward.

The company’s adjusted EBITDA for fiscal 2024 reached a strong level, reflecting its ability to optimize operations and generate consistent profitability. With a proven history of strategic acquisitions, Alliance Entertainment Holding Corporation (NASDAQ:AENT) has further solidified its market position by expanding its product offerings and entering new segments like retro gaming and collectibles. These factors position the company as a strong performer among cheap stocks in 2024, providing value and growth potential for long-term investors.