5 Best Cheap Stocks To Buy According To Billionaire Dalio

3. Vipshop Holdings Limited (NYSE:VIPS)

Stock Price: $8.70

Ray Dalio’s Bridgewater Associates’ Holdings: $21.48 million

Percentage of Ray Dalio’s Bridgewater Associates’ Portfolio: 0.09%

Number of Hedge Fund Holders: 22

Vipshop Holdings Limited (NYSE:VIPS) is a Guangzhou, China-based online discount retailer that caters to the demand of the Chinese market.

On August 22, Ashley Xu at Credit Suisse upgraded Vipshop Holdings Limited’s (NYSE:VIPS) stock from a Neutral to an Outperform rating and increased the target price from $10.30 to $12. The analyst anticipates healthy bottom-line growth for the company as revenue begins to improve. Vipshop Holdings Limited (NYSE:VIPS) is also expected to benefit from effective cost controls. The analyst highlighted that Vipshop Holdings Limited (NYSE:VIPS) has stopped issuing self-subsidized coupons and made its cost structures efficient. All these factors would improve the company’s profit margins. Furthermore, the share buyback is expected to increase the EPS outlook for Vipshop Holdings Limited (NYSE:VIPS) and result in upward revisions by analysts.

Oakmark Funds presented its stance on Vipshop Holdings Limited (NYSE:VIPS) in its Q3 2021 investor letter. Here’s what the firm said:

“Vipshop Holdings ADR (China) offers a differentiated value proposition to its customers via its online product sales and distributions services. We like that the business model is asset-light due to inventory being predominantly on consignment and logistics outsourced to a third party. We believe the company should generate meaningful free cash flow moving forward.”