12 Undervalued Cyclical Stocks to Buy Right Now

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

Forward P/E Ratio: 9.79

Earnings Growth: 14.43%

Number of Hedge Fund Holders: 75

JD.com, Inc. (NASDAQ:JD) is a Chinese e-commerce company, which has gone on to become an established player due to its robust supply chain networks. The platform it runs offers a range of products from home appliances to technology products. Joyce Ju, an analyst at Bank of America Securities, on January 22, reiterated a Buy rating on the stock while keeping the price target at $48. The analyst believes that the company will perform strongly in Q4 on the back of government subsidies and stimulus, while also benefiting from the promotional activities.

During the fiscal third quarter of 2024, JD.com, Inc. (NASDAQ:JD) grew its revenue by 5% year-over-year, driven by growth in general merchandise and electronic categories. The established logistics and supply chain networks led to its profitability higher as gross profits improved by 16% during the same time. It is one of the undervalued cyclical stocks to buy right now.

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.”

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