15 Best Cheap Stocks to Buy for 2025

The U.S. consumer prices report released this week revealed a less-than-expected increase in December, signaling a potential cooling in inflation pressures. This data has sparked bets on further tame inflation and a drop in interest rates. The core consumer price index (CPI), which excludes volatile food and energy prices, increased by 0.2%, down from 0.3% over the previous four months. This marks the first decrease in the rate of core CPI growth in six months, driven by lower hotel prices, slower increases in medical care costs, and moderate rent growth.

The data has renewed hopes that the Federal Reserve might ease interest rates sooner than anticipated. Before the report, most market participants expected rate cuts to occur in the second half of the year, if at all. However, the latest data has bolstered expectations for two cuts this year and even the possibility of a rate cut as early as March. Following the release, Treasury yields dropped, the S&P 500 rose, and the dollar weakened.

The sharp surge in equity prices is not surprising, as lower interest rates are generally bullish for several reasons. When interest rates fall, borrowing becomes cheaper for companies, which can lead to increased investment and expansion. Stock prices are often valued based on the present value of future earnings or cash flows, discounted by interest rates. Lower interest rates reduce the discount rate, increase the present value of future earnings, and make stocks appear more valuable.

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In an interview with CNBC on January 16, Christopher Waller, Governor of the Federal Reserve, discussed the recent economic data and its implications for future monetary policy decisions. Waller welcomed the strong jobs report from the previous week and the latest inflation prints, which he found particularly encouraging. He noted that the inflation data was very positive, with core PCE inflation coming in below 0.2% for the sixth month out of the last eight. This trend, he believes, is bringing inflation closer to the Fed’s 2% target in terms of core, despite a couple of bumps in September and October.

Waller emphasized that while the inflation data is promising, it is crucial to see if this trend continues. He mentioned that base effects from last year will play a role, but he is hopeful that a repeat of the shock experienced in January and February of last year will not occur again. If the current trend persists, he suggested that rate cuts could be on the table in the first half of the year.

When asked about the exact timing of potential rate cuts, Waller indicated that much depends on the continued improvement in inflation data. He stressed that the Fed is not in a rush to act, as Chair Jerome Powell has stated, and that they need to see more progress on inflation before making any decisions. Waller mentioned that while March is not entirely ruled out, any significant economic disruptions could push the timeline back. Regarding the number of rate cuts that might be expected this year, Waller reiterated that the data will drive the Fed’s decisions. He noted that the extent of progress on inflation and the perception of the neutral rate among policymakers will influence the number of cuts.

The latest consumer price data has sparked optimism among investors, as easing inflation and the possibility of interest rate cuts create a more favorable environment for businesses and markets. With that in context, let’s take a look at the 15 best cheap stocks to buy for 2025.

A financial adviser looking over a portfolio of securities and stocks.

A financial adviser looking over a portfolio of securities and stocks.

Our Methodology

To compile our list of the 15 best cheap stocks to buy for 2025, we used Finviz and Yahoo stock screeners to find the 40 largest companies trading below the forward P/E ratio of 15 as of January 15. We then used Insider Monkey’s Hedge Fund database to rank 15 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.

Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

15 Best Cheap Stocks to Buy for 2025

15. Amgen Inc. (NASDAQ:AMGN)

Forward P/E Ratio as of January 15: 12.84

Number of Hedge Fund Investors: 68

Amgen Inc. (NASDAQ:AMGN) is a leading biotechnology company specializing in discovering, developing, and manufacturing innovative medicines. The company’s products focus on oncology, cardiology, inflammation, and bone health, with customers including hospitals, pharmacies, and healthcare providers.

Amgen Inc. (NASDAQ:AMGN) is making significant strides in advancing its pipeline, which includes several potentially groundbreaking therapies. One of the key focus areas is the development of MariTide, a novel treatment for obesity, obesity-related conditions, and type 2 diabetes. The Phase II study of MariTide is progressing well, and Amgen Inc. (NASDAQ:AMGN) is preparing to initiate a broad Phase III program. Additionally, the company has initiated a dedicated Phase II trial of MariTide in patients with type 2 diabetes, highlighting its potential to address important unmet medical needs.

Amgen Inc. (NASDAQ:AMGN) is also advancing other preclinical and Phase I programs, such as AMG 513, which targets LP(a) with a potentially best-in-class small interfering RNA medicine. Amgen Inc. (NASDAQ:AMGN) is also advancing xaluritamig, a first-in-class STEAP1 CD3 bispecific molecule, into Phase III clinical development for post-taxane metastatic castrate-resistant prostate cancer. These initiatives, along with the continued development of other oncology candidates such as bemarituzumab and AMG 193, make Amgen Inc. (NASDAQ:AMGN) well-positioned to maintain its leadership in addressing critical unmet diseases.

14. Bristol-Myers Squibb Company (NYSE:BMY)

Forward P/E Ratio as of January 15: 7.85

Number of Hedge Fund Investors: 70

Bristol-Myers Squibb Company (NYSE:BMY) is a leading global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines to patients in need. The company focuses on areas such as oncology, immunology, and cardiovascular diseases.

Bristol-Myers Squibb Company (NYSE:BMY) is strategically focusing on developing and commercializing transformational medicines in disease areas where it has a competitive advantage. This includes strengthening its oncology portfolio through acquisitions, such as RayzeBio, which provides access to one of the fastest-growing platforms in solid tumor oncology with radiopharmaceuticals. In immunology, Bristol-Myers Squibb Company (NYSE:BMY) is targeting treatments that fundamentally reset the immune system, such as its CD19 NEX-T program for autoimmune diseases.

Bristol-Myers Squibb Company (NYSE:BMY) is increasingly leveraging technology and artificial intelligence (AI) to accelerate its innovation cycle and increase the probability of success in its R&D efforts. The company is using AI to enhance drug discovery, optimize clinical trials, and improve operational efficiency. By integrating advanced technologies, the company aims to bring new medicines to market faster and more efficiently, thereby driving sustainable growth and delivering value to patients and shareholders.

13. Goldman Sachs Group, Inc. (NYSE:GS)

Forward P/E Ratio as of January 15: 13.00

Number of Hedge Fund Investors: 72

The Goldman Sachs Group, Inc. (NYSE:GS) is a leading global investment banking, securities, and investment management firm with a history dating back to 1869. The firm operates across four main business segments: Global Banking & Markets, Asset & Wealth Management, Consumer & Wealth Management, and Platform Solutions.

The Goldman Sachs Group, Inc. (NYSE:GS) is focusing on enhancing its financing capabilities and expanding its leadership in private credit. The firm recently formed the Capital Solutions Group to provide a comprehensive suite of financing, origination, structuring, and risk management services. This strategic move is designed to capitalize on the growing trend of private credit and alternative asset classes, which offer investors superior returns and diversification.

Additionally, The Goldman Sachs Group, Inc. (NYSE:GS) is investing in digital capabilities to enhance the client experience and drive operational efficiency. The firm is scaling its flagship fund programs and developing new strategies to attract both institutional and third-party wealth clients. These efforts are expected to drive high-single-digit annual growth in the coming years.

The Goldman Sachs Group, Inc. (NYSE:GS) has also launched a three-year program to optimize its organizational footprint, manage expenses, and leverage technology to drive productivity. This includes expanding its presence in strategic locations, optimizing transaction-based expenses, and reducing operating costs associated with consolidated investment entities. The Goldman Sachs Group, Inc. (NYSE:GS) is also investing heavily in artificial intelligence (AI) and automation to modernize its technology to transform its engineering capabilities.

12. Comcast Corporation (NASDAQ:CMCSA)

Forward P/E Ratio as of January 15: 8.24

Number of Hedge Fund Investors: 72

Comcast Corporation (NASDAQ:CMCSA) is a leading telecommunications and media company that operates broadband, cable TV, and streaming services, as well as media and entertainment assets. The company’s customer base includes households and businesses across the U.S. and globally. Comcast Corporation’s (NASDAQ:CMCSA) key business brands include Comcast Cable, NBCUniversal, and Sky.

Comcast Corporation (NASDAQ:CMCSA) is actively expanding its broadband connectivity and enhancing its network capabilities to meet the increasing demands of consumers and businesses. As of December 9, the company provides broadband service to 63 million homes and plans to extend its reach to an additional 1.2 million homes in 2025. A primary focus is delivering 1 gigabit speed to ensure that customers have reliable high-speed internet for streaming, gaming, and other data-intensive activities. Comcast Corporation (NASDAQ:CMCSA) is also deploying DOCSIS 4.0 technology, which enables next-generation broadband over hybrid fiber-coaxial (HFC) networks. This upgrade will significantly boost network performance and support multi-gig symmetrical speeds.

Additionally, Comcast Corporation (NASDAQ:CMCSA) is leveraging its existing broadband customer base to fuel growth in the mobile market. The company recently introduced a mobile WiFi boost feature that enhances mobile devices’ internet performance on home networks by delivering speeds of up to 1 gigabit. Comcast Corporation (NASDAQ:CMCSA) is also bundling mobile services with broadband packages and offering free mobile lines with higher-tier broadband plans. This strategy aims to attract new subscribers and strengthen customer retention.

11. QUALCOMM Incorporated (NASDAQ:QCOM)

Forward P/E Ratio as of January 15: 14.03

Number of Hedge Fund Investors: 74

QUALCOMM Incorporated (NASDAQ:QCOM) is a leading semiconductor and telecommunications company known for its innovations in wireless technology. The company generates revenue by licensing its intellectual property and selling semiconductors for mobile devices and IoT applications. QUALCOMM Incorporated’s (NASDAQ:QCOM) customers include smartphone manufacturers and tech firms.

QUALCOMM Incorporated (NASDAQ:QCOM) is actively leveraging the growing demand for on-device artificial intelligence (AI) and edge computing. The company views edge AI as a transformative technology that enhances the human-computer interface by delivering context, immediacy, and personalization while maintaining privacy and security. At the recent Snapdragon Summit, QUALCOMM Incorporated (NASDAQ:QCOM) showcased its vision for AI-enabled edge computing and announced partnerships with Meta to support Llama 3.2 on Snapdragon-powered devices and with Amazon to develop a cloud-to-edge solution for customizing and deploying AI models. The company also introduced the Snapdragon 8 Elite, which features a second-generation custom Oryon CPU and a rearchitected hexagon NPU, enabling advanced AI capabilities in mobile devices.

QUALCOMM Incorporated (NASDAQ:QCOM) is also expanding its footprint in the Industrial IoT (IIoT) market with the launch of the Qualcomm IQ Series and the IoT Solutions Framework. These solutions are tailored for next-generation industrial edge applications and offer tools for inspection, automation, robotics, and advanced computer vision. The company has further integrated connectivity and computing power into its Networking Pro A7 Elite Platform to enhance its capabilities in edge networking and reinforce its leadership in industrial and IoT solutions.

10. PDD Holdings Inc. (NASDAQ:PDD)

Forward P/E Ratio as of January 15: 7.61

Number of Hedge Fund Investors: 78

PDD Holdings Inc. (NASDAQ:PDD) operates Pinduoduo, a leading e-commerce platform in China that emphasizes group purchasing to drive lower prices for consumers. The company’s platform connects consumers directly with manufacturers and offers competitive prices on a diverse range of products, including groceries, electronics, and clothing.

To foster a healthier platform ecosystem, PDD Holdings Inc. (NASDAQ:PDD) has launched a $1.36 billion fee reduction program. This initiative includes service fee refunds, reduced fees for buy now pay later services, lower security deposits, and an easier fund withdrawal process. These measures have significantly decreased operating costs for merchants, particularly those in the agricultural and national goods sectors, enabling them to invest more in product development and technological advancements.

PDD Holdings Inc. (NASDAQ:PDD) is also expanding its product offerings to cater to diverse consumer demands. For users in first- and second-tier cities, the platform is introducing new smartphones, premium-brand cosmetics, and healthy food options, targeting urban professionals and younger demographics. For those in third and fourth-tier cities and rural areas, the company is focusing on premium home appliances, maternity and baby products, and fresh produce.

9. Pfizer Inc. (NYSE:PFE)

Forward P/E Ratio as of January 15: 8.98

Number of Hedge Fund Investors: 80

Pfizer Inc. (NYSE:PFE) is a leading global biopharmaceutical company committed to discovering, developing, and delivering innovative medicines and vaccines that improve patients’ lives. The company has established itself as a pioneer in the healthcare industry, addressing a wide range of therapeutic areas including oncology, vaccines, inflammation and immunology, internal medicine, and rare diseases.

Pfizer Inc. (NYSE:PFE) is placing a strong emphasis on enhancing its R&D productivity and pipeline development to drive future growth. In 2024, the company achieved significant milestones across its five strategic priorities, including oncology, commercial execution, cost reduction, pipeline advancement, and shareholder-friendly capital allocation. For 2025, Pfizer Inc. (NYSE:PFE) is focusing on improving R&D productivity and efficiency, with a goal to develop and bring to market innovative medicines and vaccines that address unmet medical needs. This includes the initiation of 13 Phase 3 studies and critical readouts for eight of them, with a particular focus on oncology, vaccines, and metabolic diseases. Key pipeline assets include the CDK4 inhibitor, the SV and PD-L1 ADCs, and the next-generation Prevnar vaccine, all of which have the potential to be blockbuster products.

Pfizer Inc. (NYSE:PFE) is also focusing on expanding its margins through continuous cost reduction and process simplification. In 2024, the company announced a $4 billion cost reduction and an additional $1.5 billion in margin improvements, driven by the implementation of advanced technologies, including AI applications that reduce G&A costs and improve manufacturing yields. These efforts are expected to enhance operational efficiency and drive profitability.

8. Johnson & Johnson (NYSE:JNJ)

Forward P/E Ratio as of January 15: 13.61

Number of Hedge Fund Investors: 81

Johnson & Johnson (NYSE:JNJ) is a leading global healthcare company with a diverse portfolio spanning pharmaceuticals, medical devices, and consumer health products. The company operates in over 60 countries and sells products in more than 175 markets.

Johnson & Johnson (NYSE:JNJ) is actively shifting its portfolio and pipeline towards high-innovation and high-growth markets. The company recently completed the acquisitions of companies such as Shockwave Medical, V-Wave, and Ambrx, which have bolstered the company’s presence in the cardiovascular and oncology sectors. The acquisition of Shockwave Medical has made Johnson & Johnson (NYSE:JNJ) a category leader in four of the largest and highest-growth cardiovascular intervention markets. The company’s investment in these high-growth areas is expected to drive significant sales and revenue growth in the coming years.

Johnson & Johnson (NYSE:JNJ) has been investing heavily in R&D, with nearly $5 billion allocated in the third quarter of 2024. This investment includes significant payments for securing global rights to innovative assets such as the NM26 bispecific antibody. Additionally, the company is optimizing its operations following the separation of Kenvue, the consumer health business, which has led to improved operational efficiency and cost savings.

7. Exxon Mobil Corporation (NYSE:XOM)

Forward P/E Ratio as of January 15: 12.41

Number of Hedge Fund Investors: 86

Exxon Mobil Corporation (NYSE:XOM) is one of the world’s largest publicly traded energy companies, engaged in oil and gas exploration, production, refining, and petrochemical manufacturing. The company’s customers include industrial sectors, transportation firms, and energy utilities.

Exxon Mobil Corporation (NYSE:XOM) is focusing on developing high-return projects that enhance its profitability and long-term growth. The company has made significant progress on major LNG projects, including the Golden Pass and the North Field Expansion in Qatar. The company has also recently made a notable natural gas discovery off Egypt’s Mediterranean Sea. Exxon Mobil Corporation (NYSE:XOM) has completed the exploratory Nefertari-1 well in the North Marakia Block, located approximately five miles off Egypt’s northern coast. This discovery is particularly significant for Egypt, which has been facing declining gas production and increased reliance on liquefied natural gas (LNG) imports. These projects are expected to further solidify the company’s position in the global LNG market and provide stable, long-term revenue streams.

Additionally, Exxon Mobil Corporation (NYSE:XOM) is investing in advanced technologies to improve the efficiency and environmental performance of its operations, ensuring that new projects are robust and sustainable. The company is developing and deploying low-carbon solutions to address climate change while meeting the world’s energy needs. The company is advancing the world’s largest low-carbon hydrogen production facility at its Baytown site, which will produce 1 billion cubic feet per day of virtually carbon-free hydrogen, with 98% of CO2 emissions captured and stored.

6. Merck & Co., Inc. (NYSE:MRK)

Forward P/E Ratio as of January 15: 10.33

Number of Hedge Fund Investors: 86

Merck & Co., Inc. (NYSE:MRK) is a leading global pharmaceutical company dedicated to discovering, developing, and delivering innovative medicines and vaccines to improve human and animal health. The company has consistently been at the forefront of medical advancements, addressing some of the world’s most pressing health challenges.

Merck & Co., Inc. (NYSE:MRK) is developing an oral PCSK9 inhibitor, enlicitide, which is positioned as the most potent oral LDL-lowering medicine. This medicine aims to become a cost-effective oral solution to address the significant unmet need for LDL-lowering therapies. In the obesity market, Merck & Co., Inc. (NYSE:MRK) is focusing on specific subpopulations at risk of MASH and requiring significant weight loss. The company is also developing an oral GLP-1, efinopegdutide, which is expected to read out in Phase II. These initiatives are part of a broader strategy to address significant unmet needs in these markets and to bring novel, cost-effective solutions to patients.

Merck & Co., Inc. (NYSE:MRK) has made significant strides in expanding its late-stage development pipeline, nearly tripling the number of assets from 9 in 2021 to 26 in 2024. This growth is not only in quantity but also in diversity, with a focus on oncology, cardiometabolic diseases, immunology, vaccines, and ophthalmology. The company has also made substantial investments through business development, spending nearly $40 billion over the last 3.5 years to bring in new assets. A notable example is the recent acquisition of EyeBio, which brings a new mechanism of action for treating wet AMD and diabetic macular edema, a condition with significant unmet need.

5. Citigroup Inc. (NYSE:C)

Forward P/E Ratio as of January 15: 10.00

Number of Hedge Fund Investors: 88

Citigroup Inc. (NYSE:C) is a leading global financial services corporation with a presence in more than 160 countries and jurisdictions. The corporation provides a wide range of financial products and services, including consumer banking, corporate banking, investment banking, and wealth management. Citigroup Inc. (NYSE:C) revenue streams include interest income, trading activities, and fees from wealth management and consumer banking.

Citigroup Inc. (NYSE:C) has been actively transforming its operations to enhance efficiency, client experience, and long-term sustainability. A key aspect of this transformation is the significant investment in technology and data. In 2024, the company spent $11.8 billion on technology, focusing on digital innovation, new product development, and cybersecurity. Citigroup Inc. (NYSE:C) has also launched several AI platforms to improve the efficiency of its 143,000 employees and has consolidated its balance sheet reporting to a unified ledger. These investments are designed to modernize the bank’s infrastructure, streamline processes, and automate controls, ultimately leading to a more agile and responsive organization.

Furthermore, Citigroup Inc. (NYSE:C) is leveraging its global network and deep presence in key markets. The company has exited consumer businesses in nine countries, with the wind-down of operations in three more countries near completion. This strategic realignment allows Citigroup Inc. (NYSE:C) to focus on its core institutional business, where it can leverage its strengths in global services, markets, and banking.

4. Bank of America Corporation (NYSE:BAC)

Forward P/E Ratio as of January 15: 12.38

Number of Hedge Fund Investors: 98

Bank of America Corporation (NYSE:BAC) is one of the largest and most respected financial institutions in the world with a history of providing comprehensive financial services to individuals, businesses, and institutions. The bank is a global leader in consumer banking, wealth management, and investment banking.

Bank of America Corporation (NYSE:BAC) is continuously investing in technology and digital transformation. Over the past decade, the company has significantly reduced its workforce from around 300,000 to approximately 213,500, while simultaneously expanding its service offerings and improving operational efficiency. This has been achieved through the extensive use of automation and artificial intelligence. Erica, the company’s AI-powered virtual assistant has been a game-changer to save the equivalent of 3,000 full-time employees and handling an increasing number of customer interactions with high precision. Bank of America Corporation (NYSE:BAC) is also integrating AI into various aspects of its operations, from tech support to credit underwriting, to enhance customer experiences and operational efficiency.

Furthermore, Bank of America Corporation (NYSE:BAC) is focusing on core transactional banking, which includes maintaining a high percentage of primary accounts and increasing average balances. The company’s consumer base is also becoming more diverse, with a strong presence among younger demographics. Bank of America Corporation (NYSE:BAC) is also integrating technology and personalized services in wealth management, which is expected to further enhance customer satisfaction and drive market share gains.

3. JPMorgan Chase & Co. (NYSE:JPM)

Forward P/E Ratio as of January 15: 14.60

Number of Hedge Fund Investors: 105

JPMorgan Chase & Co. (NYSE:JPM) is a leading global financial services firm with operations in more than 60 countries. The company provides a wide range of financial services, including consumer and community banking, commercial banking, investment banking, and asset management. JPMorgan Chase & Co. (NYSE:JPM) serves corporations, governments, and individuals.

JPMorgan Chase & Co. (NYSE:JPM) is strengthening its consumer and community banking segment, which includes banking, wealth management, and credit card services. The firm has been actively expanding its branch network in key markets and leveraging advanced technology to enhance the customer experience. Additionally, JPMorgan Chase & Co. (NYSE:JPM) is investing in digital platforms and mobile applications to provide seamless and convenient banking services to attract a younger demographic and tech-savvy customers. The company’s efforts in this area are evident in the record number of first-time investors and nearly 10 million new card accounts acquired in 2024.

The Commercial & Investment Bank (CIB) is a cornerstone of JPMorgan Chase & Co.’s (NYSE:JPM) business, and the company is continuously working to maintain and expand its leadership position. In 2024, the CIB achieved record revenue in markets, payments, and security services, driven by strong performance in investment banking fees, advisory services, and underwriting. To sustain this momentum, JPMorgan Chase & Co. (NYSE:JPM) is investing in technology and talent, particularly in areas where it sees opportunities for growth. The firm is also focusing on improving operational efficiency, client service, and data analytics capabilities to provide more personalized and insightful services to clients, thereby fostering long-term relationships and driving revenue growth.

2. Micron Technology, Inc. (NASDAQ:MU)

Forward P/E Ratio as of January 15: 13.26

Number of Hedge Fund Investors: 107

Micron Technology, Inc. (NASDAQ:MU) is a manufacturer of memory and storage solutions, offering products such as DRAM, NAND, NOR flash memory, and solid-state drives (SSDs). The company serves customers across various markets, including data centers, PCs, graphics, networking, and automotive industries.

Micron Technology, Inc. (NASDAQ:MU) is focusing on developing and expanding its cutting-edge high-bandwidth memory (HBM) and low-power DDR5X (LPDDR5X) technologies, which are essential for advanced computing and data center applications. The company aims to achieve a natural bit share in its HBM by the second half of 2025. These efforts involve investments in front-end fabrication facilities, assembly and test processes, and enhanced cleanroom capabilities. Micron’s HBM3E and 12-high HBM products are experiencing strong demand.

Furthermore, Micron Technology, Inc. (NASDAQ:MU) is bolstering its global operations by investing in a new facility in India to support its back-end processes. These strategic investments are vital to maintaining the company’s leadership in advanced memory technologies and meeting the increasing demand from data centers, AI, and other rapidly growing sectors.

1. Alibaba Group Holding Limited (NYSE:BABA)

Forward P/E Ratio as of January 15: 8.49

Number of Hedge Fund Investors: 115

Alibaba Group Holding Limited (NYSE:BABA) is a Chinese multinational technology company specializing in e-commerce, cloud computing, and digital entertainment. The company’s platforms such as Taobao and Tmall, Alibaba Cloud, and Alibaba International Digital Commerce (AIDC) serve consumers, small businesses, and large enterprises.

Alibaba Group Holding Limited (NYSE:BABA) is prioritizing enhancements to the user experience on its platforms, especially Taobao and Tmall. The company is focusing on increasing purchase frequency and customer loyalty through programs such as the 88VIP Club loyalty program. Additionally, the company has introduced industry-standard software service fees and expanded the use of Quanzhantui, its AI-powered marketing tool, to help merchants boost marketing efficiency. Alibaba Group Holding Limited (NYSE:BABA) is also investing heavily in advanced technology and AI infrastructure to provide more reliable and cost-effective AI-driven solutions across industries.

Alibaba Group Holding Limited (NYSE:BABA) is also focused on improving the operational efficiency of its unprofitable businesses, including local services and digital media and entertainment. The company is making efforts to enhance synergies among its various business units, particularly in global logistics, to build a more integrated and streamlined ecosystem.

While we acknowledge the potential of Alibaba Group Holding Limited (NYSE:BABA) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than BABA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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