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

Growth investors are on the lookout for stocks displaying robust revenue and EPS growth. In this analysis, we'll assess whether PDD HOLDINGS INC (NASDAQ:PDD) aligns with growth investing criteria, especially as it consolidates and signals a possible breakout. As always, investors should conduct their own research, but PDD HOLDINGS INC has surfaced on our radar for growth with base formation, warranting further examination.

Deciphering NASDAQ:PDD's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:PDD has earned a 8 for growth:

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

Looking at the Health

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

• PDD has an Altman-Z score of 6.59. This indicates that PDD is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 6.59, PDD belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
• PDD has a debt to FCF ratio of 0.19. This is a very positive value and a sign of high solvency as it would only need 0.19 years to pay back of all of its debts.
• PDD's Debt to FCF ratio of 0.19 is amongst the best of the industry. PDD outperforms 93.94% of its industry peers.
• A Debt/Equity ratio of 0.01 indicates that PDD is not too dependend on debt financing.
• PDD's Debt to Equity ratio of 0.01 is fine compared to the rest of the industry. PDD outperforms 78.79% of its industry peers.
• PDD has a Current ratio of 1.83. This is in the better half of the industry: PDD outperforms 60.61% of its industry peers.
• PDD's Quick ratio of 1.83 is fine compared to the rest of the industry. PDD outperforms 69.70% of its industry peers.

Profitability Assessment of NASDAQ:PDD

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 96.97% of its industry peers.
• With an excellent Return On Equity value of 28.51%, PDD belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
• The Return On Invested Capital of PDD (22.83%) is better than 96.97% of its industry peers.
• The Profit Margin of PDD (23.27%) is better than 96.97% of its industry peers.
• PDD has a Operating Margin of 22.87%. This is amongst the best in the industry. PDD outperforms 96.97% of its industry peers.
• With an excellent Gross Margin value of 66.98%, PDD belongs to the best of the industry, outperforming 84.85% 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

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 8 out of 10:

PDD has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 125.99, a Stop Loss order could be placed below this zone.

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.