Our Stock of the Week is PDD Holdings, Inc. (PDD). PDD is a leading Chinese e-commerce platform that uses a group-buying model, which allows users to team up to purchase items at discounted prices. The platform integrates its retail model with social media, which encourages users to share product listings with friends and family so that they can form purchasing groups. PDD is a significant player in the Chinese e-commerce market.
In the third quarter of 2023, PDD reported revenue growth of 89% and EPS growth of 31%, which significantly beat estimates and caused the stock to jump 15%. The stock has been in a trading range since then, but we expect it to continue to produce great quarters in the year ahead.
The stock trades with a trailing PE of 28 and is expected to grow earnings 31% in 2024, but it has consistently beat estimates and steadily increased revenues. The current EPS estimate for 2024 is $6.43 versus $5.16 before third-quarter earnings.
Analysts like the stock with an average target price of around $165. There was a new target on Tuesday, January 2, from Benchmark of $215. Which named the stock a top pick for 2024
We are looking to slowly accumulate shares while it drifts around in a trading range.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing positions in PDD. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
