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2 Bargain Stocks That Could Soar in 2025
BABABABA(BABA) The Motley Fool·2025-02-09 14:05

Group 1: Alibaba - Alibaba's stock has not recovered post-pandemic, with revenue declining in 2022 but showing a 5% year-over-year increase in Q3 2024 [2][5] - China's e-commerce market is projected to grow 47% to 1.7trillioninthenextthreeyears,benefitingAlibabaasthelargeste−commerceandcloudservicesprovider[3]−InternationalcommercerevenueforAlibabagrew351.7 trillion in the next three years, benefiting Alibaba as the largest e-commerce and cloud services provider [3] - International commerce revenue for Alibaba grew 35% year-over-year, and the cloud division reported triple-digit growth in AI-related products [4] - Alibaba generated 12 billion in net income on 134billionofrevenue,withthestocktradingat11timesthisyear′searningsestimate,indicatingapotentialbargainforinvestors[5]Group2:Wayfair−Wayfair′srevenuegrowthwaspreviouslyaround40134 billion of revenue, with the stock trading at 11 times this year's earnings estimate, indicating a potential bargain for investors [5] Group 2: Wayfair - Wayfair's revenue growth was previously around 40% annually but declined due to a weak housing market, with a recent revenue decline of only 2% year-over-year indicating stabilization [6][7] - The company has improved its financial position by exiting less favorable markets and returning to positive free cash flow, positioning for long-term growth [8] - Wayfair maintains a large customer base of over 21 million, with an increase in average order value by 4.4% year-over-year to 310, suggesting potential for recovery as the housing market improves [9][10] - The stock's price-to-sales multiple has stabilized around 0.5, indicating significant upside potential in a growing home goods market [10]