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Got $1,000? 2 Stocks to Buy Now While They're on Sale
JDJD(JD) The Motley Fool·2025-02-06 08:05

Group 1: Roku - Roku is a leading brand in streaming with over 85 million households using its platform, offering both free ad-supported and premium content [2] - The stock has doubled since its low in 2022 but remains below its peak, with revenue and streaming households growing at double-digit rates year-over-year [3][6] - Trailing-12-month free cash flow increased by 56% to 157million,indicatingpotentialforhealthyprofitsasthebusinessgrows[3]Internationalmarketsaredrivinggrowthinhouseholdusage,butmonetizationinthesemarketslagsbehindtheU.S.,suggestingfuturerevenueperuserandmarginimprovements[4]Operatingexpensesdecreasedby17157 million, indicating potential for healthy profits as the business grows [3] - International markets are driving growth in household usage, but monetization in these markets lags behind the U.S., suggesting future revenue per user and margin improvements [4] - Operating expenses decreased by 17% year-over-year, narrowing operating losses from 688 million in the first nine months of 2023 to 179 million year-to-date through Q3 2024 [5] - The stock trades at a price-to-sales (P/S) multiple of 3.08, in line with the S&P 500 average, with potential for further increases as revenue continues to grow and losses narrow [6] Group 2: JD.com - JD.com is a leading e-commerce operator in China, with its share price affected by a weak economy and sales growth, currently trading at just 9 times 2025 earnings estimates [7] - Revenue grew by 5% year-over-year in Q3, supported by an increase in the active customer base and improved shopping frequency [7] - The company's well-established supply chain and infrastructure, built over 20 years, are helping to control costs and improve margins, with adjusted net income growing nearly 30% year-over-year in Q3 [8] - JD.com has seen consistent gains in general merchandise for three consecutive quarters, with strong momentum in supermarkets and apparel, indicating a solid competitive position [9] - The company is returning excess cash to shareholders, having paid 1.2 billion in dividends last year and announcing a new $5 billion share repurchase program, suggesting the shares are undervalued [10]