Is PDD Holdings Stock a Good Investment?
PDD Holdings Investment Advice | PDD |
- Examine PDD Holdings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research PDD Holdings' leadership team and their track record. Good management can help PDD Holdings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Broadline Retail space and any emerging trends that could impact PDD Holdings' business and its evolving consumer preferences.
- Compare PDD Holdings' performance and market position to its competitors. Analyze how PDD Holdings is positioned in terms of product offerings, innovation, and market share.
- Check if PDD Holdings pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about PDD Holdings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in PDD Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if PDD Holdings is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine PDD Holdings Stock
Researching PDD Holdings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 34.0% of the company shares are owned by institutional investors. The book value of PDD Holdings was at this time reported as 136.09. The company has Price/Earnings To Growth (PEG) ratio of 0.35. PDD Holdings recorded earning per share (EPS) of 10.14. The entity had not issued any dividends in recent years.
To determine if PDD Holdings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding PDD Holdings' research are outlined below:
| PDD Holdings had very high historical volatility over the last 90 days | |
| PDD Holdings is unlikely to experience financial distress in the next 2 years | |
| Latest headline from zacks.com: PDD Holdings Plunges 5.1 percent Since Q3 Earnings Time to Sell the Stock |
PDD Holdings Quarterly Liabilities And Stockholders Equity |
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PDD Holdings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in PDD Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to PDD Holdings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 18th of March 2024 Upcoming Quarterly Report | View | |
| 24th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 18th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact PDD Holdings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises PDD Holdings' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2021-03-17 | 2020-12-31 | 0.08 | -0.15 | -0.23 | 287 | ||
2019-03-13 | 2018-12-31 | -1.47 | -1.72 | -0.25 | 17 | ||
2019-05-20 | 2019-03-31 | -1.7 | -1.2 | 0.5 | 29 | ||
2020-05-22 | 2020-03-31 | -1.97 | -2.73 | -0.76 | 38 | ||
2020-03-11 | 2019-12-31 | -1.56 | -0.72 | 0.84 | 53 | ||
2019-11-20 | 2019-09-30 | -0.53 | -1.44 | -0.91 | 171 | ||
2018-11-20 | 2018-09-30 | -1.68 | -0.68 | 1.0 | 59 | ||
2019-08-21 | 2019-06-30 | -1.37 | -0.36 | 1.01 | 73 |
Know PDD Holdings' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as PDD Holdings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading PDD Holdings backward and forwards among themselves. PDD Holdings' institutional investor refers to the entity that pools money to purchase PDD Holdings' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Arrowstreet Capital Limited Partnership | 2024-06-30 | 8.4 M | Jpmorgan Chase & Co | 2024-06-30 | 8.3 M | T. Rowe Price Associates, Inc. | 2024-06-30 | 6.8 M | Assenagon Asset Management Sa | 2024-09-30 | 5.8 M | Amvescap Plc. | 2024-06-30 | 5.4 M | Tairen Capital Ltd | 2024-06-30 | 5.4 M | Legal & General Group Plc | 2024-06-30 | 5.3 M | Appaloosa Lp | 2024-09-30 | 5.3 M | Fidelity International Ltd | 2024-06-30 | 5.3 M | Baillie Gifford & Co Limited. | 2024-09-30 | 36.1 M | Blackrock Inc | 2024-06-30 | 29.1 M |
PDD Holdings' market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 134.1 B.Market Cap |
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PDD Holdings' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.17 | 0.18 | |
| Return On Capital Employed | 0.30 | 0.32 | |
| Return On Assets | 0.17 | 0.18 | |
| Return On Equity | 0.32 | 0.34 |
Determining PDD Holdings' profitability involves analyzing its financial statements and using various financial metrics to determine if PDD Holdings is a good buy. For example, gross profit margin measures PDD Holdings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of PDD Holdings' profitability and make more informed investment decisions.
Please note, the presentation of PDD Holdings' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, PDD Holdings' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of PDD Holdings' management manipulating its earnings.
Evaluate PDD Holdings' management efficiency
PDD Holdings has Return on Asset of 0.1725 % which means that on every $100 spent on assets, it made $0.1725 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.495 %, implying that it generated $0.495 on every 100 dollars invested. PDD Holdings' management efficiency ratios could be used to measure how well PDD Holdings manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.18. The current year's Return On Capital Employed is expected to grow to 0.32. At present, PDD Holdings' Net Tangible Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 56 B, whereas Intangible Assets are forecasted to decline to about 20.1 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 128.35 | 134.77 | |
| Tangible Book Value Per Share | 128.34 | 134.75 | |
| Enterprise Value Over EBITDA | 24.52 | 25.74 | |
| Price Book Value Ratio | 8.05 | 7.65 | |
| Enterprise Value Multiple | 24.52 | 25.74 | |
| Price Fair Value | 8.05 | 7.65 | |
| Enterprise Value | 1.5 T | 1.5 T |
Management at PDD Holdings focuses on leveraging technology and optimizing operations. We evaluate the impact of these focuses on the company's financial health and stock performance.
Beta 0.705 |
Basic technical analysis of PDD Stock
As of the 30th of November, PDD Holdings holds the Risk Adjusted Performance of 0.0465, semi deviation of 3.18, and Mean Deviation of 2.48. In respect to fundamental indicators, the technical analysis model allows you to check helpful technical drivers of PDD Holdings, as well as the relationship between them. Please check PDD Holdings standard deviation, value at risk, kurtosis, as well as the relationship between the jensen alpha and semi variance to decide if PDD Holdings is priced fairly, providing market reflects its current price of 96.56 per share. Given that PDD Holdings has jensen alpha of 0.2007, we recommend you to check out PDD Holdings's recent market performance to make sure the company can sustain itself in the future.PDD Holdings' Outstanding Corporate Bonds
PDD Holdings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. PDD Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most PDD bonds can be classified according to their maturity, which is the date when PDD Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand PDD Holdings' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing PDD Holdings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0465 | |||
| Market Risk Adjusted Performance | (1.01) | |||
| Mean Deviation | 2.48 | |||
| Semi Deviation | 3.18 | |||
| Downside Deviation | 3.35 | |||
| Coefficient Of Variation | 1981.26 | |||
| Standard Deviation | 3.73 | |||
| Variance | 13.94 | |||
| Information Ratio | 0.0136 | |||
| Jensen Alpha | 0.2007 | |||
| Total Risk Alpha | (0.44) | |||
| Sortino Ratio | 0.0152 | |||
| Treynor Ratio | (1.02) | |||
| Maximum Drawdown | 24.21 | |||
| Value At Risk | (5.75) | |||
| Potential Upside | 4.85 | |||
| Downside Variance | 11.25 | |||
| Semi Variance | 10.12 | |||
| Expected Short fall | (2.82) | |||
| Skewness | 0.6195 | |||
| Kurtosis | 3.3 |
| Risk Adjusted Performance | 0.0465 | |||
| Market Risk Adjusted Performance | (1.01) | |||
| Mean Deviation | 2.48 | |||
| Semi Deviation | 3.18 | |||
| Downside Deviation | 3.35 | |||
| Coefficient Of Variation | 1981.26 | |||
| Standard Deviation | 3.73 | |||
| Variance | 13.94 | |||
| Information Ratio | 0.0136 | |||
| Jensen Alpha | 0.2007 | |||
| Total Risk Alpha | (0.44) | |||
| Sortino Ratio | 0.0152 | |||
| Treynor Ratio | (1.02) | |||
| Maximum Drawdown | 24.21 | |||
| Value At Risk | (5.75) | |||
| Potential Upside | 4.85 | |||
| Downside Variance | 11.25 | |||
| Semi Variance | 10.12 | |||
| Expected Short fall | (2.82) | |||
| Skewness | 0.6195 | |||
| Kurtosis | 3.3 |
Consider PDD Holdings' intraday indicators
PDD Holdings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of PDD Holdings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 260897.0 | |||
| Daily Balance Of Power | (0.85) | |||
| Rate Of Daily Change | 0.98 | |||
| Day Median Price | 97.17 | |||
| Day Typical Price | 96.97 | |||
| Price Action Indicator | (1.73) | |||
| Period Momentum Indicator | (2.24) | |||
| Relative Strength Index | 38.97 |
PDD Holdings Corporate Filings
6K | 27th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
13A | 22nd of October 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
| 25th of April 2024 Other Reports | ViewVerify |
PDD Stock media impact
Far too much social signal, news, headlines, and media speculation about PDD Holdings that are available to investors today. That information is available publicly through PDD media outlets and privately through word of mouth or via PDD internal channels. However, regardless of the origin, that massive amount of PDD data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of PDD Holdings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of PDD Holdings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to PDD Holdings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive PDD Holdings alpha.
PDD Holdings Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards PDD Holdings can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
PDD Holdings Historical Investor Sentiment
Investor biases related to PDD Holdings' public news can be used to forecast risks associated with an investment in PDD. The trend in average sentiment can be used to explain how an investor holding PDD can time the market purely based on public headlines and social activities around PDD Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
PDD Holdings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for PDD Holdings and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average PDD Holdings news discussions. The higher the estimate score, the more favorable the investor's outlook on PDD Holdings.
PDD Holdings Corporate Management
| David Liu | Vice Strategy | Profile | |
| Xin Lim | Investor Officers | Profile | |
| Jianchong Zhu | Sr Counsel | Profile | |
| Jun Liu | Vice Finance | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PDD Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in unemployment. For information on how to trade PDD Stock refer to our How to Trade PDD Stock guide.You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Is Broadline Retail space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PDD Holdings. If investors know PDD will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PDD Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 1.4 | Earnings Share 10.14 | Revenue Per Share 248.59 | Quarterly Revenue Growth 0.857 | Return On Assets 0.1725 |
The market value of PDD Holdings is measured differently than its book value, which is the value of PDD that is recorded on the company's balance sheet. Investors also form their own opinion of PDD Holdings' value that differs from its market value or its book value, called intrinsic value, which is PDD Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PDD Holdings' market value can be influenced by many factors that don't directly affect PDD Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between PDD Holdings' value and its price, as these two are different measures arrived at by various means. Investors typically determine if PDD Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PDD Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.