13 Most Undervalued NASDAQ Stocks To Buy According To Hedge Funds

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

Number of Hedge Fund Holders: 78

Forward P/E Ratio as of March 12: 9.85

JD.com, Inc. (NASDAQ:JD), a supply chain-driven technology and service provider in China, offers a range of products, including electronics, home appliances, and general merchandise such as food, beverages, and baby products. On March 10, Mizuho raised its price target for JD.com from $43 to $50 and maintained an Outperform rating on the shares. It ranks 8th on our list of the most undervalued NASDAQ stocks.

JD.com, Inc. (NASDAQ:JD) ended 2024 with a 7% year-over-year increase in total revenue, surpassing the growth of overall retail sales and online physical goods. The company also saw steady growth in non-GAAP net profit, with its net margin reaching 4.1%. While continuing to invest in long-term expansion, JD made solid progress toward its profitability goals. In the fourth quarter, most categories and revenue streams experienced strong double-digit growth. Free cash flow for the year rose to RMB 44 billion from RMB 41 billion in 2023, fueled by improved profitability and lower capital expenditures, though partly offset by cash outflows to secure important supplies. By the close of Q4, the company held RMB 241 billion in cash, restricted cash, and short-term investments.

As per Insider Monkey’s fourth quarter database, 78 hedge funds were bullish on JD.com, Inc. (NASDAQ:JD), up from 75 funds in the last quarter.