NASDAQ:PDD qualifies as a high growth stock and is consolidating.

Last update: Jan 3, 2024

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.

Looking at the Growth

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 49.42% over the past year.
PDD shows a strong growth in Revenue. In the last year, the Revenue has grown by 68.33%.
PDD shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 137.06% yearly.
PDD is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.97% yearly.
The Revenue is expected to grow by 36.34% on average over the next years. This is a very strong growth

What does the Health looks like 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:

An Altman-Z score of 7.26 indicates that PDD is not in any danger for bankruptcy at the moment.
PDD's Altman-Z score of 7.26 is amongst the best of the industry. PDD outperforms 93.75% 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.
PDD's Debt to FCF ratio of 0.19 is amongst the best of the industry. PDD outperforms 93.75% of its industry peers.
A Debt/Equity ratio of 0.01 indicates that PDD is not too dependend on debt financing.
PDD has a better Debt to Equity ratio (0.01) than 78.13% of its industry peers.
PDD has a Quick ratio of 1.83. This is in the better half of the industry: PDD outperforms 68.75% of its industry peers.

What does the Profitability looks like for NASDAQ:PDD

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:PDD has achieved a 7:

PDD has a Return On Assets of 14.70%. This is amongst the best in the industry. PDD outperforms 96.88% of its industry peers.
With an excellent Return On Equity value of 28.51%, PDD belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
PDD has a better Return On Invested Capital (22.83%) than 93.75% of its industry peers.
The Profit Margin of PDD (23.27%) is better than 96.88% of its industry peers.
PDD has a better Operating Margin (22.87%) than 96.88% of its industry peers.
Looking at the Gross Margin, with a value of 66.98%, PDD belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
In the last couple of years the Gross Margin of PDD has grown nicely.

How does the Setup look for NASDAQ:PDD

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:PDD this score is currently 8:

PDD has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 145.63, 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.

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

Keep in mind

This article should in no way be interpreted as advice in any way. 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.