1. Qurate Retail, Inc. (NASDAQ:QRTEA)
Share Price: $0.68
Forward P/E: 1.37
EPS Growth This Year: 108.30%
Number of Hedge Fund Holders: 19
Qurate Retail (NASDAQ:QRTEA) specializes in the video and online commerce industries in Europe, North America, and Asia. It operates a network of subsidiaries, QVC, Inc., which includes HSN, Inc. and Cornerstone Brands, Inc. Qurate Retail (NASDAQ:QRTEA) markets and sells a number of consumer products through merchandise-focused televised shopping programs, mobile applications, and the Internet. It serves various consumers through social pages, multiple streaming services, print catalogs, and in-store destinations.
Formerly known as Liberty Interactive Corporation, Qurate Retail (NASDAQ:QRTEA) operates in three segments: QxH, QVC, and CBI. The QxH segment sells and markets a range of consumer products in the US, typically through televised shopping programs and the Internet (websites and mobile applications). The CBI segment covers a portfolio of aspiration apparel and home brands in the US, selling merchandise through brick-and-mortar locations and the Internet. The QVC International segment sells and markets a range of consumer products in international markets through its televised shopping programs and the Internet through international websites and mobile applications.
The company experienced some macro and top-line pressures recently but managed to expand its gross margin across all of its business units for the fifth consecutive quarter. These gains were boosted by continued product margin and fulfillment improvement from its project Athens initiatives. Qurate Retail (NASDAQ:QRTEA) is also disciplined in cost management, lowering its total company SG&A expenses. This resulted in growth in its total company-adjusted OIBDA growth and adjusted OIBDA margin expansion for the fourth consecutive quarter. The company also boosted profitability in its core video commerce businesses.
Qurate Retail (NASDAQ:QRTEA) focused investment in its Age of Possibility campaign in Q2. It was launched in April, gathering 50 influential and powerful women to be QVC brand ambassadors. This list included businesswomen, celebrities, and activities. The company has received a positive response from this campaign since its launch, earning around 38 billion media impressions, more than a million visits to QVC’s campaign website, around 200% increase in QVC social followers, and a 330,000 increase in its Facebook community members. This success drove strong demand from Age of Possibility-related brands during the quarter.
Overall, QRTEA ranks first among the 7 penny stocks with low P/E ratios. While we acknowledge the potential of penny stocks, 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 QRTEA but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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