NASDAQ:PDD—A High-Growth Stock Gearing Up for Its Next Upward Move.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether PDD HOLDINGS INC (NASDAQ:PDD) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but PDD HOLDINGS INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Deciphering NASDAQ:PDD's Growth Rating

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:PDD, the assigned 8 reflects its growth potential:

• The Earnings Per Share has grown by an impressive 49.42% over the past year.
• PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 68.33%.
• 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 19.97% 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 36.34% on average per year.

Assessing Health Metrics for NASDAQ:PDD

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:PDD has achieved a 7 out of 10:

• PDD has an Altman-Z score of 7.34. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
• PDD has a better Altman-Z score (7.34) than 94.12% of its industry peers.
• The Debt to FCF ratio of PDD is 0.19, which is an excellent value as it means it would take PDD, only 0.19 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.19, PDD belongs to the top of the industry, outperforming 94.12% 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 has a Debt to Equity ratio of 0.01. This is in the better half of the industry: PDD outperforms 79.41% of its industry peers.
• PDD's Quick ratio of 1.83 is fine compared to the rest of the industry. PDD outperforms 70.59% of its industry peers.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:PDD was assigned a score of 7 for profitability:

• PDD has a Return On Assets of 14.70%. This is amongst the best in the industry. PDD outperforms 97.06% of its industry peers.
• Looking at the Return On Equity, with a value of 28.51%, PDD belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
• The Return On Invested Capital of PDD (22.83%) is better than 94.12% of its industry peers.
• PDD's Profit Margin of 23.27% is amongst the best of the industry. PDD outperforms 97.06% of its industry peers.
• PDD has a Operating Margin of 22.87%. This is amongst the best in the industry. PDD outperforms 97.06% of its industry peers.
• Looking at the Gross Margin, with a value of 66.98%, PDD belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
• In the last couple of years the Gross Margin of PDD has grown nicely.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:PDD scores a 7 out of 10:

PDD has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. 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.

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

Our latest full fundamental report of PDD contains the most current fundamental analsysis.

Our latest full technical report of PDD contains the most current technical analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.