We've compiled it recently 10 Most Profitable Cheap Stocks to Buy Now. In this article, we will take a look at the position of PDD Holdings Inc. (NASDAQ:PDD) representing other most profitable cheap stocks.
U.S. stocks rose Friday, May 2, as the S&P 500, Dow Jones industrial average and technology-heavy Nasdaq stocks all showed impressive returns. The S&P 500 rose by nearly 1.5%, marking the longest winning streak for the S&P 500 since November 2004 was the ninth consecutive day. The Dow Jones Index rose 1.4% to report its ninth straight win. Meanwhile, Nasdaq shares rose about 1.5%.
Please read also: Buy 13 Best Positive Growth Stocks Now and 14 U.S. technology stocks purchased now.
The rally came after China said it was open to trade talks and better than expected U.S. jobs report. In April, the U.S. economy increased 177,000 non-agricultural wages, which exceeded expectations of 138,000 economists. The unemployment rate remained stable at 4.2%. The data shows that despite the uncertainty of the stock market in April due to tariff issues, the labor market is resilient.
Investors are also encouraged to pass signs that the U.S.-China trade war may be relaxing. China said Friday it is evaluating recent U.S. trade negotiation proposals to see how severe the Trump administration has changed its policy stance. China's Commerce Minister said that if the United States agrees to withdraw from reciprocity tariffs, it will “open the door.” These comments help reduce concerns about tariffs reducing the risk of economic slowdown.
Overall, people hope to improve U.S.-China relations, coupled with solid work growth, will help build confidence in Wall Street.
To compile a list of the 10 most profitable cheap stocks we are buying now, we used the Finviz Stock Filter to find stocks with a forward P/E ratio of less than 15. We made the results based on market cap and selected revenue as of April 29, 2025, which we rated our forward earnings at 15 times. Next step. More than $1 billion. Finally, we focus on the top 10 most popular stocks that institutional investors like. Data on hedge fund sentiment around each stock are taken from Insider Monkey’s Q4 2024 database, which has over 1,000 elite hedge funds. Then, based on the number of hedge funds holding shares in the fourth quarter of 2024, the 10 most profitable cheap stocks currently purchased are now ranked in ascending order.
Why do we care about the work of hedge funds? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks every quarter, returning 373.4% since May 2014, exceeding 218 percentage points. ((See more details here).
