13 Undervalued Cyclical Stocks to Buy According to Hedge Funds

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1. Alibaba Group Holding Limited (NYSE:BABA)

Forward P/E Ratio: 14.09

Number of Hedge Fund Holders: 125

Alibaba Group Holding Limited (NYSE:BABA) is one of the Undervalued Cyclical Stocks to Buy According to Hedge Funds. On August 14, Alibaba International, one of the seven segments of Alibaba Group Holding Limited (NYSE:BABA) announced the launch of Accio Agent, an AI-powered tool for global trade.

This new launch comes at a time when Accio has reached more than 2 million users. This new agent is built for small businesses and solo entrepreneurs. It automates 70% of manual workflows and covers product ideas prototyping, compliance checks, and supplier sourcing. Management noted that the AI agent is trained on one billion product listings and 50 million supplier profiles. It uses advanced models to analyze feedback, supplier performance, and business needs.

Alibaba Group Holding Limited (NYSE:BABA) provides technology infrastructure and marketing platforms across multiple business segments. It operates e-commerce platforms like Taobao, Tmall, Lazada, and AliExpress.

While we acknowledge the potential of BABA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than BABA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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