12 Reddit Stocks with High Potential

6. JD.Com Inc. (NASDAQ:JD)

Number of Hedge Fund Holders: 78

Average Upside Potential as of April 15: 44.95%

JD.Com Inc. (NASDAQ:JD) is a supply chain-based technology and service provider. It offers computers, communication, consumer electronics products, home appliances, and general merchandise products. It also provides integrated data, technology, business, and user management industry solutions for digitizing enterprises. It operates tech-driven supply chain solutions and logistics services as well.

The company’s CAGR from 2019 to 2024 was 15%, recent years have shown a slowdown, with growth of 3.7% in 2023 and 6.8% in 2024. However, on March 10, Mizuho raised its price target for JD.Com Inc. (NASDAQ:JD) from $43 to $50 while maintaining an Outperform rating. JD.com ended 2024 with a 7% year-over-year improvement in its overall revenue, which exceeded the total retail sales and online physical goods growth.

The company’s Electronics and Home Appliances category generated RMB 174.1 billion in Q4 2024 revenue. This was a 15.8% increase year-over-year. This was fueled by JD.com’s well-established supply chain, its focus on providing high-quality service, and the trust that the company’s consumers place in the platform for these types of products. Government stimulus policies, such as trade-in programs, have also improved consumer demand within the electronics and home appliances sector.

Ariel Global Fund 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.”