NASDAQ:PDD, a strong growth stock, setting up for a breakout.

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.

Growth Insights: NASDAQ:PDD

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:PDD has received a 8 out of 10:

• PDD shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 113.90%, which is quite impressive.
• Looking at the last year, PDD shows a very strong growth in Revenue. The Revenue has grown by 87.39%.
• Measured over the past years, PDD shows a very strong growth in Revenue. The Revenue has been growing by 79.96% on average per year.
• 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 27.10% on average over the next years. This is a very strong growth

Health Assessment of NASDAQ:PDD

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:PDD, the assigned 9 for health provides valuable insights:

• An Altman-Z score of 5.74 indicates that PDD is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.74, PDD belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
• The Debt to FCF ratio of PDD is 0.04, which is an excellent value as it means it would take PDD, only 0.04 years of fcf income to pay off all of its debts.
• PDD has a better Debt to FCF ratio (0.04) than 93.55% of its industry peers.
• PDD has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
• Looking at the Debt to Equity ratio, with a value of 0.02, PDD is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
• 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 70.97% 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 83.87% of its industry peers.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:PDD, the assigned 8 is noteworthy for 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 96.77% of its industry peers.
• PDD has a Return On Invested Capital of 31.27%. This is amongst the best in the industry. PDD outperforms 100.00% of its industry peers.
• PDD had an Average Return On Invested Capital over the past 3 years of 17.97%. This is significantly above the industry average of 11.22%.
• The last Return On Invested Capital (31.27%) for PDD is above the 3 year average (17.97%), which is a sign of increasing profitability.
• The Profit Margin of PDD (29.10%) is better 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 Gross Margin of 62.06%. This is amongst the best in the industry. PDD outperforms 83.87% of its industry peers.

How does the Setup look for NASDAQ:PDD

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:PDD is 8:

Although the technical rating is bad, PDD does present a nice setup opportunity. Prices have been consolidating lately. There is very little resistance above the current price.

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

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 is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.