18 Best 52-Week Low Stocks to Buy Now According to Short Sellers

5. NetEase Inc (NASDAQ:NTES)

52 Week Range: $80.63 – $118.90

Current Share Price: $83.53

Number of Hedge Fund Holders: 35

Short interest rate: 0.76%

Headquartered in Hangzhou, China, NetEase, Inc. (NASDAQ:NTES) is one of the best 52-week low stocks to buy now, according to short sellers, for gaining exposure in China’s Communication service sector. The company distributes online games, music streaming, online intelligent learning services, and internet content services businesses.

Over the past year, NetEase, Inc. (NASDAQ:NTES) has underperformed, given that it is only up by about 2% from its 52-week lows. Amid the underperformance, the company delivered solid Q2 2024 results with net revenues totaling $3.5 billion, up 6.7% per year. The company attributed the increase to the success of its games, including Once Human and Maraca: Bladepoint Mobile, and their continued expansion across various genres and platforms.

Likewise, A.I. integration in game development has led to a 200% year-over-year growth in AI-driven subscription services. NetEase, Inc. (NASDAQ:NTES) is positioned for continued growth amid increased investment in A.I. technology and a diverse gaming portfolio. Its strategic partnership with Blizzard and the development of new titles are anticipated to contribute to future successes.

NetEase’s price-to-earnings (P/E) ratio multiple of 11 and its even more enticing adjusted P/E ratio for the past year, as of the first quarter of 2024, at 12.5, shows it is trading at a discount compared to its expected earnings growth. This makes NetEase an appealing investment choice considering its future growth potential.

NetEase, Inc. (NASDAQ:NTES) ‘s dedication to rewarding its shareholders is clear, with a history of increasing its dividend for three years and keeping dividend payments for 12 years straight. This affirms why it is one of the best stocks trading at 52-week lows. As of 2024, the dividend yield is 3.05%, demonstrating the company’s commitment to delivering steady returns to its investors. The percentage of shares short as of the end of July stood at 0.76%

The number of hedge funds tracked by Insider Monkey owning stakes in NetEase, inc. (NASDAQ:NTES) fell from 41 to 35 during the second quarter of 2024. Orbis Investment Management held the largest position in NetEase, Inc. (NASDAQ:NTES), owning 1.91 million shares valued at $182.28 million.

Polen Emerging Markets Growth Strategy stated the following regarding Net Ease, Inc. (NASDAQ: NTES) in its first quarter 2024 investor letter:

“NetEase, Inc. (NASDAQ:NTES) is one of the top players in China’s video game industry and saw decent revenue growth in 2023, particularly in its games division, with profit growth close to 20%. The stock also continues to recover after gaming restrictions announced last quarter in China were not nearly as bad as first feared.”