PDD HOLDINGS INC (NASDAQ:PDD) – A Strong Growth Stock Trading at a Reasonable Valuation

PDD HOLDINGS INC (NASDAQ:PDD) was identified as an affordable growth stock by our stock screener. The company combines strong growth with solid profitability and financial health while trading at a reasonable valuation. Below, we examine why PDD stands out in these areas.

Growth Prospects

PDD has demonstrated impressive growth metrics:

• Revenue increased by 35.67% over the past year, with a five-year average growth rate of 67.20%.
• Earnings per share (EPS) grew by 22.07% in the last year and 106.51% annually over the past five years.
• Future EPS growth is expected at 8.84%, while revenue is projected to expand by 11.12% annually.

Attractive Valuation

Despite its strong growth, PDD remains reasonably priced:

• The stock trades at a P/E ratio of 10.10, significantly below the industry average of 34.54 and the S&P 500 average of 26.55.
• Its forward P/E of 6.82 suggests further upside potential.
• The Price/Free Cash Flow ratio is also favorable compared to peers.

Strong Profitability and Financial Health

PDD excels in profitability and financial stability:

• Return on Equity (ROE) of 30.08% and Return on Assets (ROA) of 18.69% are well above industry averages.
• Operating margin stands at 24.47%, reflecting efficient operations.
• The company has no debt, with a strong current ratio of 2.27, indicating ample liquidity.

For a deeper look at PDD’s fundamentals, review the full analysis report.

Our Affordable Growth screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.