Investors might want to bet on PDD Holdings Inc. (PDD) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.The upward trend in estimate revisions for this company reflects growing optimism of analysts on its earnings prospects, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trend ...

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, June 3rd:PDD Holdings Inc. (PDD) : This e-commerce company that operates Pinduoduo has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 43.8% over the last 60 days.PDD’s shares gained 22.7% over the last three months compared with the S&P 500’s advance of 3.6%. The company possesses a Momentum Score of A.MS&AD Insurance Group Holdings, Inc. (MSADY) : Thi ...

PDD Holdings Inc. (PDD) closed the last trading session at $149.78, gaining 6.9% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $192.87 indicates a 28.8% upside potential.The average comprises 15 short-term price targets ranging from a low of $111 to a high of $272, with a standard deviation of $46.34. While the lowest estimate indicates a decline of 25.9% from the current price l ...

Investment Rating - The report maintains a **Buy** rating for the company with a target price of **$211.80**, representing a **41% upside** from the current price of **$149.72** [2][3] Core Views - The domestic business is in a positive cycle, with strong growth in online retail and e-commerce sales in Q1, driven by low-price positioning and efficient operations [1] - The overseas business, particularly Temu, continues to grow, with global sales increasing sequentially and significant progress in reducing losses [9] - The company's advertising efficiency gives it an advantage over competitors, and the competitive landscape in the grocery business is easing, driving both average order value and profitability [1] Financial Performance - Revenue for 2024-2026 is forecasted to reach **4,582/6,221/7,681 billion yuan**, with operating profits of **1,352/1,856/2,334 billion yuan** [2] - Non-GAAP EPS for 2024-2026 is projected at **96.2/131.8/165.3 yuan per ADS** [2] - Q1 2024 revenue reached **868.12 billion yuan**, a **131% YoY increase**, with online marketing services contributing **424.56 billion yuan** (+56% YoY) and transaction services contributing **443.56 billion yuan** (+327% YoY) [36] - Operating profit for Q1 2024 was **259.75 billion yuan**, a **275% YoY increase**, with an operating margin of **29.9%** and an adjusted operating margin of **32.9%** [36] - Net profit for Q1 2024 was **279.98 billion yuan**, a **246% YoY increase**, with a net margin of **32.3%** [36] Operational Highlights - The company's cash, cash equivalents, and short-term investments stood at **2,421 billion yuan** at the end of Q1 2024, with **555.92 billion yuan** in cash and equivalents [36] - Operating cash flow for Q1 2024 was **210.67 billion yuan** [36] - Marketing expenses in Q1 2024 were **234.11 billion yuan**, accounting for **27.0%** of revenue, marking a decline for the fifth consecutive quarter [36] - R&D expenses in Q1 2024 were **29.10 billion yuan**, a **16% YoY increase**, accounting for **3.4%** of revenue [36] Industry and Competitive Position - The domestic e-commerce industry remains challenging due to intense competition and market saturation, but the company maintains a leading position in its core business [1] - The overseas business, particularly Temu, is showing strong growth, with efforts to optimize logistics and reduce costs, including increasing the proportion of sea freight [9] Valuation and Forecasts - The company's enterprise value is estimated at **3,034.806 billion yuan**, with a market capitalization of **3,152.170 billion yuan** [29] - The target price of **$211.80** is based on a **20% discount rate** and reflects strong growth prospects in both domestic and international markets [29]

Chinese e-commerce giant Pinduoduo has been behind its rivals Alibaba and JD.com when it comes to international expansion. Now Pinduoduo has launched a U.S. e-commerce site called Temu.PDD's value-for-money positioning and growth of its Temu marketplace has helped the tech giant lead China's e-commerce arena, analysts said, making it the country's most valuable company in the segment.PDD Holdings reported stellar first-quarter results on Wednesday, sending its shares surging as much as 7.5%, and driving its ...

Investment Rating - The report does not explicitly mention an investment rating for Pinduoduo (PDD US) [7] Core Views - Pinduoduo is expected to report strong Q1 2024 results with total revenue of RMB 76 4 billion, up 103% YoY [7] - Online marketing revenue is projected at RMB 37 5 billion, up 38% YoY, while transaction service revenue is expected to reach RMB 39 0 billion, up 275% YoY [7] - Operating expenses are forecasted at RMB 30 5 billion, up 56% YoY, with a cost ratio of 40% [7] - Operating profit is anticipated to be RMB 12 8 billion, up 85% YoY, with a profit margin of 16 7% [7] - Non GAAP operating profit is estimated at RMB 14 9 billion, up 76% YoY, with a profit margin of 19 5% [7] - Diluted EPS is projected at RMB 2 25, with ADS earnings of RMB 8 75 [7] Business Segments - Pinduoduo s main platform is expected to maintain a leading growth rate compared to peers, partly due to a low base in Q1 2023 [7] - Duoduo Maicai achieved profitability in Q1, driven by both average order value and profit margins [7] - Temu s global GMV continued to grow sequentially in Q1, with semi hosted services launched in mid March showing progress [7] - Overseas business costs are primarily driven by logistics and marketing expenses, with fulfillment costs increasing sequentially in Q1 [7] - Marketing expenses are expected to be controlled, as the company paused US market spending after the Super Bowl in February [7]

Investment Rating - The investment rating for the company is "Buy" with a target price raised to $213.00, indicating a potential upside of 44.8% from the current price of $147.09 [3][12]. Core Insights - The company's main platform continues to outperform expectations in monetization and TEMU's losses are narrowing. The first quarter of 2024 saw a revenue increase of 131% year-on-year to 86.8 billion RMB, exceeding market expectations by 22% and 13% respectively. Advertising and commission revenues grew by 56% and 327% [1][2]. - The company is expected to maintain a strong growth trajectory, with projected GMV growth of over 30% for the domestic platform and a 200%+ increase in TEMU's GMV, reaching $50 billion in 2024 [2][6]. - The valuation has been adjusted upwards, with total revenue and profit estimates for 2024 increased by 7% and 24% respectively, forecasting a 91% revenue growth and a 100% profit growth for the year [2][6]. Financial Overview - For the fiscal year ending December 31, 2024, the company is projected to generate revenue of 424.8 billion RMB, a 71.5% increase year-on-year, with net profit expected to reach 127.6 billion RMB, reflecting an 85.4% growth [6][17]. - The company's adjusted net profit margin is anticipated to improve, with adjusted net profit margins projected at 35% for Q1 2024 [7][9]. - The company's market capitalization stands at approximately $195.4 billion, with a 52-week high of $151.33 and a low of $60.02 [5][17]. Performance Metrics - The company has demonstrated significant operational leverage, with adjusted net profit for Q1 2024 increasing by 202% year-on-year to 30.6 billion RMB, significantly surpassing market expectations [1][7]. - The gross margin for Q1 2024 is reported at 62%, with an adjusted operating profit margin of 33% [7][9]. - The company's PEG ratio for its core e-commerce business is only 0.2, indicating a strong competitive advantage and potential for continued high profit growth [2][6].

Investment Rating - The report maintains a "Buy" rating for Pinduoduo (PDD US) with a target price of 186 USD for 2024 [14][16] Core Views - Pinduoduo's Q1 revenue and profit significantly exceeded expectations, driven by strong performance in both its main platform and Temu [1][30] - Revenue for Q1 reached 86 8 billion RMB, up 131% YoY, surpassing Bloomberg consensus estimates of 76 9 billion RMB [30] - Online marketing service revenue grew 56% YoY to 42 5 billion RMB, while commission income surged 327% YoY to 44 4 billion RMB, surpassing expectations [30] - Adjusted net profit for Q1 was 30 6 billion RMB, up 202% YoY, far exceeding the expected 15 5 billion RMB [30] - The company's gross margin was 62 3%, down 8 1 percentage points YoY but up 1 8 percentage points QoQ [30] - Sales and marketing expense ratio, general and administrative expense ratio, and R&D expense ratio improved significantly, dropping by 16 2, 0 1, and 3 3 percentage points YoY respectively [30] Business Performance - Pinduoduo's main platform continues to benefit from high monetization rates, driven by strong bargaining power with white-label merchants and a focus on low-cost advantages [30] - Temu's innovative fully-hosted and semi-hosted models have significantly reduced costs for domestic merchants going global, boosting GMV and average order value [30] - Temu has expanded to over 50 countries and regions across Asia, Europe, North America, South America, and Oceania [30] - The company's online marketing and commission income both exceeded expectations, with commission income surpassing online marketing for the first time, largely driven by Temu's rapid growth [30][34] Financial Projections - Revenue forecasts for FY2024E, FY2025E, and FY2026E have been revised upward to 4,020, 5,130, and 6,283 billion RMB respectively, representing YoY growth of 62%, 28%, and 22% [25][30] - Adjusted net profit for the same periods is projected to be 962, 1,307, and 1,653 billion RMB, with YoY growth of 42%, 36%, and 26% [25][30] - The company's operating profit surged 275% YoY, with the operating margin improving to 29 9% [8] - Adjusted net profit margin increased to 35 3%, up 202% YoY [8] Valuation - The report uses a SOTP valuation method, comparing Pinduoduo to leading global online retail and online marketing companies [14] - The target price of 186 USD for 2024 is based on this valuation approach [14]

The Chinese e-commerce giant is still firing on all cylinders.PDD (PDD 2.56%) posted its first-quarter earnings report on May 22. The Chinese e-commerce giant's revenue soared 131% year over year to 86.81 billion yuan ($12.02 billion) and exceeded analysts' estimates by $1.44 billion. Its adjusted earnings per ADS surged 199% to $2.83 and also cleared the consensus forecast by $1.40.PDD's growth rates were impressive, but its stock has already risen nearly 160% over the past 12 months. Should investors chas ...

| --- | --- | |-------------------------------------|------------| | | | | [Table_Rank] 投资评级：增持（维持） | | | 报告日期： 2024-5-24 | | | [Table_BaseData] 收盘价（美元） | 147.09 | | 近 12 个月最高 / 最低（美元） | 152.9/60.0 | | 总股本（百万股） | 5555 | | 流通股本（百万股） | 5555 | | 流通股比例（ % ） | 100 | | 总市值（亿美元） | 2134 | | 流通市值（亿美元） | 2134 | [Table_CompanyReport] 相关报告 ⚫[Table_Summary] 24Q1 业绩：利润大超预期，费用结构持续优化 敬请参阅末页重要声明及评级说明 证券研究报告 [Table_CompanyRptType1] 拼多多（PDD） 敬请参阅末页重要声明及评级说明 3 / 4 证券研究报告 分析师声明 以本报告发布之日起 6 个月内，证券（或行业指数）相对于同期相关证券市场代表性指数的涨跌幅作为基准， ...