Exploring the Growth Potential of PDD HOLDINGS INC (NASDAQ:PDD) as It Nears a Breakout.

Exploring Growth Potential: PDD HOLDINGS INC (NASDAQ:PDD) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and PDD HOLDINGS INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected PDD HOLDINGS INC on our screen for growth with base formation, suggesting it merits a closer look.

How do we evaluate the Growth for NASDAQ:PDD?

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:PDD boasts a 8 out of 10:

• The Earnings Per Share has grown by an impressive 113.90% over the past year.
• The Revenue has grown by 87.39% in the past year. This is a very strong growth!
• The Revenue has been growing by 79.96% on average over the past years. This is a very strong growth!
• PDD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.38% yearly.
• The Revenue is expected to grow by 26.33% on average over the next years. This is a very strong growth

Health Analysis for NASDAQ:PDD

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:PDD scores a 9 out of 10:

• PDD has an Altman-Z score of 6.39. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
• PDD has a Altman-Z score of 6.39. This is amongst the best in the industry. PDD outperforms 87.50% of its industry peers.
• PDD has a debt to FCF ratio of 0.04. This is a very positive value and a sign of high solvency as it would only need 0.04 years to pay back of all of its debts.
• PDD has a better Debt to FCF ratio (0.04) than 93.75% of its industry peers.
• A Debt/Equity ratio of 0.02 indicates that PDD is not too dependend on debt financing.
• PDD has a better Debt to Equity ratio (0.02) than 78.13% of its industry peers.
• PDD has a Current Ratio of 2.15. This indicates that PDD is financially healthy and has no problem in meeting its short term obligations.
• PDD has a better Current ratio (2.15) than 78.13% of its industry peers.
• A Quick Ratio of 2.15 indicates that PDD has no problem at all paying its short term obligations.
• PDD has a Quick ratio of 2.15. This is amongst the best in the industry. PDD outperforms 90.63% of its industry peers.

Exploring NASDAQ:PDD's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:PDD, the assigned 8 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 23.19%, PDD belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• PDD's Return On Equity of 38.87% is amongst the best of the industry. PDD outperforms 93.75% of its industry peers.
• PDD has a better Return On Invested Capital (31.27%) than 100.00% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for PDD is significantly above the industry average of 11.77%.
• The 3 year average ROIC (17.97%) for PDD is below the current ROIC(31.27%), indicating increased profibility in the last year.
• PDD has a better Profit Margin (29.10%) than 100.00% of its industry peers.
• PDD has a better Operating Margin (28.28%) than 100.00% of its industry peers.
• PDD has a better Gross Margin (62.06%) than 84.38% of its industry peers.

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 7 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 a resistance zone just above the current price starting at 128.51. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 114.71, a Stop Loss order could be placed below this zone.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.