3 Top Stocks That’ll Make You Richer in the Fourth Quarter (and

For 18 months, Wall Street and investors have enjoyed an historic ride. The widely followed S&P 500 has effectively doubled off of its bear-market low, marking the strongest bounce-back rally from a bear market bottom in history.

But in spite of this rally, bargains can still be found. As long as your investing timeline can be measured in years, there’s plenty of opportunity to buy great companies at a perceived discount. The following trio of top stocks has the potential to make investors a lot richer in the fourth quarter and, more importantly, well beyond.

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JD.com

There may not be a more shunned group of companies on Wall Street right now than China stocks. A crackdown by Chinese regulators on data-centric industries has investors clearly concerned.

We’ve witnessed visible action taken by Chinese regulators, with leading e-commerce company Alibaba (NYSE:BABA) hit with a record $2.8 billion antitrust fine in April. But my take is this short-term political pain could be to long-term investors’ gain when it comes to JD.com (NASDAQ:JD).

JD is the No. 2 online retailer in China behind Alibaba, but the two businesses are nothing alike. Alibaba’s e-commerce platform is almost entirely based on a third-party marketplace. Meanwhile, JD’s marketplace is predominantly a direct-to-consumer model. This means it handles the inventory and logistics of getting purchased products from Point A to B.

Though it does offer some middleman-type third-party marketplace services, it represents a very small percentage of sales. Since JD is firmly in control of its marketplace, there’s little chance it’s a target for regulators.

Being in control of the second-largest online marketplace in China is an envious place to be. China’s economy has consistently grown at a faster pace than other large countries, and its middle class is still discovering simple luxuries like being able to order products online. As of the end of June, JD had nearly 532 million active customers over the trailing 12 months. That’s up from 417 million in the prior-year period. 

Furthermore, it’s not just about e-commerce with JD. Even though online retail is what drives most consumers to the brand, the company’s management team is aiming to branch off into higher-margin ventures.

Its services segment, which is focused on cloud computing, healthcare, and advertising, grew sales by 49% in the second quarter. Even though these segments account for a small percentage of total sales, their higher margins, relative to online retail, should have a notably positive long-term effect on operating cash flow.

What investors are getting with JD is a company with 15% to 20% annual sales-growth potential that could realistically triple its earnings per share by 2024. That’s a screaming bargain.

Image source: Getty Images.

Lovesac

If you like high-growth, innovative small-cap stocks, you’re going to love Lovesac (NASDAQ:LOVE). I mean, the…