Core Viewpoint - PDD Holdings has experienced a stock decline of 5.7% year-to-date, underperforming the industry and S&P 500 index, primarily due to weak market conditions in China and escalating U.S.-China tensions [1] Group 1: Market Performance - The company faces stiff competition in both domestic and international e-commerce markets, with its global business still in the exploration stage [2] - PDD Holdings' stock performance is negatively impacted by declining export volumes in China, affecting not only PDD but also competitors like Alibaba and JD.com [1] Group 2: E-commerce Business Strength - The strength of PDD's e-commerce business model, particularly through its Pinduoduo platform, is a significant positive factor, enhancing customer engagement and online retail penetration [3] - A diverse range of product offerings, including agricultural produce and household goods, attracts customers to the Pinduoduo platform [3] - The company is focused on strengthening relationships with top brands and small to medium merchants globally to expand its offerings [3] Group 3: Technical Advancements and Agriculture Focus - PDD Holdings plans to invest RMB 10 billion in technical advancements in 2024, marking its second consecutive year of such investment [4] - The company's strong positioning in agriculture, promoting digital inclusion for smallholder farmers, is a notable advantage [5] - Partnerships with local communities and efforts to support a new generation of skilled farmers and merchants enhance PDD's agricultural initiatives [5] Group 4: Financial Projections and Liquidity - The Zacks Consensus Estimate for 2024 revenues is $56.27 billion, indicating a year-over-year growth of 62.4% [6] - The consensus estimate for 2024 earnings is $12.32 per share, suggesting an 87.8% growth from the previous year [6] - PDD Holdings has a strong liquidity position, with cash and short-term investments of RMB 242.1 billion as of March 31, 2024, and no long-term debt [6] Group 5: Valuation and Investment Opportunity - PDD is currently trading at a forward 12-month P/E of 9.92X, which is lower than the industry average of 14.83X, indicating a solid investment opportunity [7] - The company holds a Value Score of B and a Growth Score of A, which are favorable indicators for investors [8] Group 6: Conclusion - The combination of strong e-commerce momentum, solid financial health, and rising earnings estimates presents a compelling case for buying PDD stock at current levels [9]

Stock Performance - PDD Holdings Inc Sponsored ADR closed at $133 15, up 0 4% from the previous session, outperforming the S&P 500 which lost 0 77%, the Dow which lost 0 6%, and the Nasdaq which lost 1 05% [1] - Over the last month, PDD shares decreased by 3 7%, underperforming the Conglomerates sector's gain of 3 33% but outperforming the S&P 500's loss of 5 85% [1] Earnings and Revenue Projections - The upcoming EPS is projected at $2 89, a 100 69% increase compared to the same quarter of the previous year [1] - The Zacks Consensus Estimate for revenue projects net sales of $13 72 billion, up 90 3% from the year-ago period [1] - For the entire fiscal year, earnings are projected at $12 32 per share and revenue at $56 27 billion, representing increases of 87 8% and 62 43%, respectively, from the prior year [2] Analyst Estimates and Revisions - Recent changes to analyst estimates reflect shifting short-term business patterns, with positive revisions indicating confidence in the company's business performance and profit potential [2] - The Zacks Consensus EPS estimate has remained steady over the past month, and PDD currently holds a Zacks Rank of 2 (Buy) [3] Valuation Metrics - PDD is trading at a Forward P/E ratio of 10 77, a discount compared to the industry average of 17 45 [3] - The company has a PEG ratio of 0 21, significantly lower than the industry average of 1 78, indicating a favorable earnings growth trajectory [3] Industry Overview - The Diversified Operations industry, part of the Conglomerates sector, has a Zacks Industry Rank of 50, placing it in the top 20% of all industries [4] - Research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

NEW YORK, Aug. 03, 2024 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of PDD Holdings Inc. f/k/a Pinduoduo Inc. (“PDD” or the “Company”) (NASDAQ: PDD).   Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether PDD and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] ...

PDD Holdings Inc - ADR (NASDAQ:PDD) stock is seeing support from bullish quantified data as well as seasonal tailwinds, per Schaeffer’s Senior Quantitative Analyst Rocky White. The security pulled back to its long-term 200-day moving average, and the past three times this occurred, the stock was higher one month later with an average 8.79% rise. Plus, PDD has seen positive returns in August 67% of the time since the stock’s inception, averaging a 15.8% return. There is trading at the last large put strike, ...

Investors should look for companies that offer solid returns after meeting all operating and non-operating costs. Thus, it is a good idea to bet on a profitable company over a loss-making one.Here, we have used the concept of accounting ratios to evaluate a company’s profitability. There are several profitability ratios, from which we have chosen the most successful and frequently used metric to determine a firm's bottom-line performance.To that end, PDD Holdings Inc. (PDD) , HNI Corporation (HNI) , and Amp ...

Core Perspective - PDD Holdings, the parent company of Pinduoduo, is emerging as a significant player in the e-commerce sector, particularly by focusing on underserved markets and leveraging a group-buy business model to drive growth [1][2]. Group 1: Company Growth and Performance - Pinduoduo achieved a gross merchandise value (GMV) of $100 billion in just four years, significantly faster than Alibaba, which took nine years to reach the same milestone [3]. - The company's revenue surged from $4.3 billion in 2019 to $34.9 billion last year, with a record net profit of $8.5 billion [3]. - Pinduoduo's strategy of targeting rural areas and small cities has allowed it to capture substantial market share in a competitive landscape [2]. Group 2: International Expansion - Pinduoduo has initiated its global expansion through the brand Temu, which launched in the U.S. market in 2022 and now operates in over 50 markets [4]. - As of September 2023, Temu has reached 82 million active users in the U.S. and has achieved over 50 million monthly downloads [4]. - The company utilizes its extensive supply chain resources and marketing investments to attract global consumers, supported by a strong financial position with $33.5 billion in cash and investments [5]. Group 3: Competitive Landscape and Challenges - Temu faces significant competition from established players like Amazon and must enhance its quality control and logistics to succeed [5]. - The company is also subject to scrutiny from local regulators, which could impact its growth trajectory [5]. - Despite the challenges, PDD Holdings trades at a relatively low valuation of 17 times trailing earnings, reflecting market sentiment towards Chinese stocks [6].

We Are Thesis Retail markets are very dynamic, the ranks of the most popular retailers are constantly changing as new formats are being developed. The companies that strike a chord with their new formats can grow very fast and deliver extraordinary returns to shareholders. Low-cost Direct-To-Consumer retail has been the most successful format in the markets as of late. Retailers like Costco (COST), Ikea and Decathlon have grown rapidly. Now e-commerce retailers are taking over the low-cost DTC segment ...

Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, July 26th:PDD Holdings Inc. (PDD) : This e-commerce company that operates Pinduoduo carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 1.2% over the last 60 days.PDD has a PEG ratio of 0.21 compared with 2.14 for the industry. The company possesses a Growth Score  of B.Vertiv Holdings Co (VRT) : This critical digital infrastructure technologies ...

Stock Performance - PDD Holdings Inc Sponsored ADR shares returned -49% over the past month compared to the Zacks S&P 500 composite's +18% change [1] - The Zacks Diversified Operations industry lost 24% over the same period [1] Earnings Estimates - Current quarter earnings estimate is $289 per share, representing a +1007% year-over-year change [3] - Current fiscal year earnings estimate is $1232, indicating a +878% year-over-year change [3] - Next fiscal year earnings estimate is $1495, showing a +214% change from expected year-ago results [3] - All earnings estimates have remained unchanged over the last 30 days [3] Revenue Estimates - Current quarter sales estimate is $1372 billion, indicating a +903% year-over-year change [5] - Current fiscal year sales estimate is $5627 billion, representing a +624% change [5] - Next fiscal year sales estimate is $7159 billion, showing a +272% change [5] Recent Results - Last reported quarterly revenues were $1202 billion, a +1194% year-over-year increase [6] - Last reported EPS was $283, compared to $101 a year ago [6] - Reported revenues exceeded consensus estimate by +132% [6] - EPS surprise was +7687% [6] - Company has beaten consensus EPS and revenue estimates in each of the trailing four quarters [6] Valuation - PDD Holdings Inc Sponsored ADR is graded C on the Zacks Value Style Score, indicating it is trading at par with its peers [9] Analyst Rating - PDD Holdings Inc Sponsored ADR has a Zacks Rank 1 (Strong Buy) [4] - The Zacks Rank is based on recent changes in consensus estimates and other earnings-related factors [4]

Core Viewpoint - Growth investors are increasingly focusing on stocks with above-average financial growth, and PDD Holdings Inc. Sponsored ADR (PDD) is highlighted as a strong candidate due to its favorable growth metrics and top Zacks Rank [1][6]. Earnings Growth - PDD Holdings Inc. has a historical EPS growth rate of 335%, with projected EPS growth of 87.8% for the current year, significantly outperforming the industry average of 10.5% [3]. Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 76.3%, which is substantially higher than the industry average of -4.7%. Over the past 3-5 years, PDD's annualized cash flow growth rate has been 52.5%, compared to the industry average of 11.2% [4]. Earnings Estimate Revisions - The current-year earnings estimates for PDD have been revised upward, with the Zacks Consensus Estimate increasing by 2% over the past month, indicating a positive trend in earnings estimate revisions [5]. Overall Positioning - PDD Holdings Inc. has achieved a Growth Score of B and a Zacks Rank 1, positioning it well for potential outperformance in the market, making it an attractive option for growth investors [6][7].