NASDAQ:PDD—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if PDD HOLDINGS INC (NASDAQ:PDD) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted PDD HOLDINGS INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Growth Analysis for NASDAQ:PDD

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PDD has received a 8 out of 10:

• PDD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 85.18%, which is quite impressive.
• The Revenue has grown by 58.93% in the past year. This is a very strong growth!
• The Revenue has been growing by 137.06% on average over the past years. This is a very strong growth!
• The Earnings Per Share is expected to grow by 18.06% on average over the next years. This is quite good.
• Based on estimates for the next years, PDD will show a very strong growth in Revenue. The Revenue will grow by 20.30% on average per year.

ChartMill's Evaluation of Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PDD has received a 7 out of 10:

• PDD has an Altman-Z score of 6.90. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
• PDD has a better Altman-Z score (6.90) than 91.18% of its industry peers.
• The Debt to FCF ratio of PDD is 0.26, which is an excellent value as it means it would take PDD, only 0.26 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.26, PDD belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
• PDD has a Debt/Equity ratio of 0.01. This is a healthy value indicating a solid balance between debt and equity.
• PDD's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. PDD outperforms 76.47% of its industry peers.
• The Quick ratio of PDD (1.91) is better than 70.59% of its industry peers.

Exploring NASDAQ:PDD's Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:PDD has earned a 7 out of 10:

• With an excellent Return On Assets value of 15.04%, PDD belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
• With an excellent Return On Equity value of 28.38%, PDD belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
• PDD has a better Return On Invested Capital (22.08%) than 94.12% of its industry peers.
• PDD has a Profit Margin of 24.96%. This is amongst the best in the industry. PDD outperforms 97.06% of its industry peers.
• The Operating Margin of PDD (23.72%) is better than 97.06% of its industry peers.
• Looking at the Gross Margin, with a value of 72.07%, PDD belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
• In the last couple of years the Gross Margin of PDD has grown nicely.

Why is NASDAQ:PDD a setup?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:PDD has a 8 as its setup rating:

PDD has an excellent technical rating and also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. We notice that large players showed an interest for PDD in the last couple of days, which is a good sign. Another positive sign is the recent Pocket Pivot signal.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Check the latest full fundamental report of PDD for a complete fundamental analysis.

For an up to date full technical analysis you can check the technical report of PDD

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.