We recently compiled a list of the 12 Best Growth Stocks to Buy and Hold in 2025. In this article, we are going to take a look at where JD.com, Inc. (NASDAQ:JD) stands against the other growth stocks.
The Future of Rate Cuts in 2025
The latest data from the job market in the United States came out on Friday and that has made the future of rate cuts even more uncertain. Lauren Sanfilippo, senior investment strategist at Bank of America, joined Market Domination on Yahoo Finance to discuss her market thesis and how the easing cycle is expected to play out in 2025.
Sanfilippo believes that the market has been basing its decisions on the easing cycle, but the job data, which has been particularly good, has allowed investors to pivot their investment approach away from rate cuts. She added that she is not looking at more rate cuts this year and is expecting a hike amid inflation concerns. She suggested that the market must not overreact to one piece of data and wait for more data to come out before any decisions are made.
Speaking of the commencement of the easing cycle, Sanfilippo believes the Fed was in the right to start the much-awaited easing cycle. However, she did share her concerns about the 100 basis point rate cut being executed over a very short time. She added that while the job market is in good shape and inflation is not that much of a problem yet, the stock market’s performance may also be influenced because of yields and how stocks are “thinking about yields.” She also suggested that previously stocks have been very tolerant of higher yields, and is interested to see how it changes going forward.
Sanfilippo also shared her views on inflation and emphasized the importance of viewing the bigger picture more holistically. She added there is a much larger widening opportunity in the market but is waiting to see how the Q4 2024 earnings pan out.
The market may be uncertain, however, some stocks in the market have a promising outlook making them a solid buy. These stocks have been pouring into solid growth opportunities and are popular among analysts and investors. That said, let’s take a look at the 12 best growth stocks to buy and hold in 2025.
Our Methodology
We used Finviz to look for companies operating in growth sectors such as technology, financials (fintech), biotech, and communication services. We only focused on companies with a market cap of at least $2 billion and that gained more than 50% over the past 2 quarters. We then examined the analyst upside surrounding 25 stocks and picked the 12 stocks with the highest upside as of January 10, 2025. We have also included the hedge fund sentiment around each stock.
Why are we interested in the stocks that hedge funds pile into? 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).
A wide and imposing view of a supply chain distribution center, illustrating the company’s technology capabilities.
JD.com, Inc. (NASDAQ:JD)
Analyst Upside as of January 10, 2025: 44%
Number of Hedge Fund Holders: 75
JD.com, Inc. (NASDAQ:JD), commonly referred to as Jingdong, is one of the largest e-commerce companies in China. JD.com, Inc. (NASDAQ:JD) also provides services in the logistics, cloud, health, industrial, and property industries. The company has over 1,600 warehouses and currently operates in more than 200 countries and regions worldwide.
In the third quarter of 2024, JD.com, Inc. (NASDAQ:JD) shared a positive outlook on its profitability and improved customer sentiment. The company has powerful supply chain capabilities, contributing to its expanding market share in China. As a result, in the third quarter of 2024, JD saw a 5.1% increase in revenue, hinting at sustainable momentum in consumer demand.
Overall order volume and shipping frequency both grew by double digits during the quarter, emphasizing JD’s increasing position in the e-commerce industry. JD.com’s (NASDAQ:JD) value proposition lies in low prices, driven by subsidies, and a strong e-commerce ecosystem supported by its logistics and technological capabilities.
Ariel Investments’ Ariel Global Fund stated the following regarding JD.com, Inc. (NASDAQ:JD) in its Q3 2024 investor letter:
“China-based E-commerce company, JD.com, Inc. (NASDAQ:JD) was the top contributor in the quarter as the People’s Bank of China’s (PBOC) comprehensive stimulus measures bolstered investor confidence in the Chinese economy. The improving economic sentiment is fueling consumer spending which benefits the company’s retail operations. Additionally, the company’s strategic decision to diversify general merchandise product offerings, expand its third-party marketplace business and monetize advertising streams has contributed to consecutive quarterly earnings beats. JD.com is also poised to capitalize on the home appliance trade-in program, which is one of its largest product categories. Given the favorable market environment, the company’s strategic positioning and supply chain efficiency improvements, we continue to like its long-term growth prospects.”
Overall JD ranks 9th on our list of the best growth stocks to buy and hold in 2025. While we acknowledge the potential of JD as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than JD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
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