Core Viewpoint - PDD Holdings is expected to report strong third-quarter results, with significant revenue and earnings growth anticipated compared to the previous year [3][19]. Financial Performance - The Zacks Consensus Estimate for revenues in Q3 2024 is $14.47 billion, reflecting a 53.36% increase from the same quarter last year [3]. - The consensus estimate for earnings is $2.82 per share, indicating an 81.94% growth year-over-year, with a recent upward revision of 2.9% [3]. - PDD has a history of earnings surprises, with a 10.73% surprise in the last quarter and an average surprise of 41.14% over the last four quarters [4]. Strategic Initiatives - The company is focusing on agricultural digitization through its agriculture cloud initiative and partnerships, enhancing its competitive position in the agricultural e-commerce sector [6]. - PDD's investment in supply chain efficiencies and a RMB10 billion transaction fee reduction program aims to support high-quality merchants, driving platform improvements and increased adoption [7]. - Technological innovations in merchant onboarding and product listing processes are being implemented to balance scale and quality control, strengthening the company's market position [8]. Market Position and Consumer Trends - PDD's performance in Q2 2024, with an 86% year-over-year revenue increase to RMB97.1 billion, sets a strong foundation for Q3 [9]. - The company is adapting to changing consumer preferences towards experience-based consumption, which aligns with its platform capabilities [11]. - Despite facing competition from major players like Amazon, eBay, and Alibaba, PDD's strategic focus on long-term growth and innovation positions it favorably in the market [13]. Valuation and Investment Opportunity - PDD shares have underperformed in the year-to-date period, losing 19.6%, compared to the industry's decline of 6.8% and the S&P 500's growth of 24% [14]. - Currently, PDD is trading at a forward 12-month P/E of 8.94X, significantly lower than the industry's 15.35X, indicating a potential investment opportunity [17]. - The company's strong cash position of RMB284.9 billion supports its strategic initiatives and long-term growth plans [10][19].

Core Viewpoint - PDD Holdings Inc. has shown a recent downtrend in stock price, but the formation of a hammer chart pattern suggests a potential trend reversal, supported by rising optimism among analysts regarding future earnings [1]. Group 1: Technical Analysis - The stock has lost 5.4% over the past two weeks, but a hammer chart pattern formed in the last trading session indicates that bulls may be gaining support against bears [1]. - A hammer chart pattern signals a potential bottom in a downtrend, suggesting that selling pressure may be exhausting [2]. - The hammer pattern occurs when a stock opens lower, makes a new low, but then closes near or slightly above its opening price, indicating a possible loss of control by bears [2]. Group 2: Fundamental Analysis - There has been an upward trend in earnings estimate revisions for PDD, with a 1.3% increase in the consensus EPS estimate for the current year over the last 30 days, indicating analysts expect better earnings [3]. - PDD holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [3]. - The Zacks Rank serves as a timing indicator, suggesting that the company's prospects are beginning to improve, reinforcing the potential for a turnaround [3].

Group 1 - PDD Holdings (NASDAQ: PDD) presents a strong value and growth opportunity with a two-year 37% enterprise value CAGR and a 43.5% margin of safety for investment based on the valuation model [1] - The macroeconomic conditions in China are expected to slow significantly, which may impact the company's performance [1] - The investment analyst Oliver Rodzianko specializes in the technology sector, focusing on AI, semiconductors, software, and renewable energy, emphasizing companies with resilient management and competitive advantages [1]

DUBLIN and SHANGHAI, Nov. 14, 2024 (GLOBE NEWSWIRE) -- PDD Holdings Inc. (“PDD Holdings” or the “Company”) (NASDAQ: PDD) today announced that it will report its unaudited financial results for the third quarter ended September 30, 2024, before U.S. markets open on Thursday, November 21, 2024. The Company’s management will hold an earnings conference call at 7:30 AM ET on November 21, 2024 (12:30 PM IST and 8:30 PM HKT on the same day). The conference call will be webcast live at https://investor.pddholdings ...

The most recent trading session ended with PDD Holdings Inc. Sponsored ADR (PDD) standing at $113.41, reflecting a -0.34% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.02%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq lost 0.26%.Shares of the company witnessed a loss of 11.24% over the previous month, trailing the performance of the Conglomerates sector with its loss of 8.03% and the S&P 500's gain of 2.99%.Analysts and inve ...

PDD Holdings Inc. Sponsored ADR (PDD) has been on a downward spiral lately with significant selling pressure. After declining 13.9% over the past four weeks, the stock looks well positioned for a trend reversal as it is now in oversold territory and there is strong agreement among Wall Street analysts that the company will report better earnings than they predicted earlier.Here is How to Spot Oversold StocksWe use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spottin ...

Core Viewpoint - The Zacks Diversified Operations industry is expected to benefit from growth in aerospace, defense, and oil & gas sectors, driven by strong demand in commercial aviation and medical markets, alongside infrastructure development and technological advancements [1][4]. Industry Overview - The Zacks Diversified Operations industry encompasses companies across various sectors, including oil and gas, industrial, electronics, aviation, and healthcare, providing equipment and solutions such as gas turbines, commercial jet engines, and bioprocessing products [3]. - Industry players also offer services in agriculture, marine, and telecommunications, with a significant global presence in markets like the U.S., Japan, India, and China [4]. Major Trends - **Strength in Aerospace & Defense Markets**: The industry benefits from strong demand in defense and governmental sectors, increased oil and gas exploration, and infrastructure development, with commercial aviation markets showing healthy growth [4]. - **Investments in Innovation & Technological Advancements**: Continuous focus on innovation and digitization is expected to enhance operational productivity and product quality, driving growth in the industry [5]. - **Weakness in the Manufacturing Sector**: The manufacturing sector is experiencing persistent weakness, with the Manufacturing Purchasing Manager's Index at 46.5% in October, indicating contraction [6][7]. - **Supply-Chain Disruptions**: Ongoing supply-chain issues, particularly regarding electrical and electronic components, are a concern for industry participants, as reflected in slower deliveries [8]. Industry Performance - The Zacks Diversified Operations industry holds a Zacks Industry Rank of 61, placing it in the top 24% of over 250 Zacks industries, indicating strong prospects [9][10]. - The industry's earnings estimates for the current year have increased by 14.4% over the past year, reflecting positive sentiment among analysts [11]. - Over the past year, the industry has underperformed the S&P 500, rising 13.7% compared to the S&P 500's 36.6% growth [13]. Current Valuation - The industry is currently trading at a forward P/E of 15.42X, compared to the S&P 500's 22.43X, with historical trading ranges between 15.42X and 38.15X over the past five years [14]. Notable Stocks - **PDD Holdings**: This multinational commerce group is benefiting from its strong e-commerce business model, with a 16.2% increase in shares over the past year and a 0.5% upward revision in 2024 earnings estimates [15][16]. - **Federal Signal**: This company is well-positioned to benefit from robust aftermarket demand and has seen a 38.9% increase in shares over the past year, with a 1.2% upward revision in 2024 earnings estimates [17][18].

Investment Rating - The report downgrades Pinduoduo (PDD US) to a **Neutral** rating, with a current price of US$122.15 and a target price of US$130.00 [1][5] Core Views - Pinduoduo's domestic business remains robust, with Q3 2024 revenue expected to exceed Bloomberg consensus estimates by 1.8%, reaching RMB 104.4 billion, driven by a 51.6% YoY growth [7] - Adjusted net profit for Q3 2024 is projected at RMB 31.3 billion, 7.2% above consensus, with a net profit margin of 30% [7] - Despite strong performance, mid-to-long-term stock price pressure is expected due to unresolved geopolitical risks, particularly US tariff policies affecting TEMU [7][18] - The report assigns a 25% discount to TEMU's valuation, reflecting market concerns over potential tariff impacts, leading to a revised target price of US$130 [18] Financial Performance - Revenue for 2024E is forecasted at RMB 414.07 billion, a 67% YoY increase, with net profit expected to grow 88% YoY to RMB 127.7 billion [4] - Gross profit margin (GPM) is projected to stabilize at 63.6% in 2024E, slightly up from 63.0% in 2023A [4] - ROE is expected to decline from 72.2% in 2023A to 50.8% in 2024E, reflecting higher equity base and operational challenges [4] - P/E ratio is estimated at 10x for 2024E, down from 19x in 2023A, indicating a more attractive valuation [4] Geopolitical Risks - Trump's potential tariff policies, including a 10% universal tariff and a 60% tariff on Chinese goods, could severely impact TEMU's price competitiveness and profitability [11][12] - TEMU may face challenges in passing tariff costs to consumers or merchants, potentially eroding its price advantage and squeezing margins [12] - Biden's proposed reforms to the 1974 Trade Act, including adjustments to the $800 de minimis threshold, are unlikely to significantly affect TEMU [14][15] Valuation and Market Sentiment - Pinduoduo's core platform business is valued at 12x 2024E PER, based on a projected GMV of RMB 4.9 trillion and operating profit of RMB 141.5 billion [18] - Despite a market cap of US$169.64 billion, representing a 10x 2024E valuation, the stock is considered one of the most cost-effective options in China's e-commerce sector [18] - Market sentiment remains fragile, with geopolitical risks overshadowing strong domestic performance, leading to a downgrade to Neutral [18]

Company Overview - PDD Holdings, founded by Colin Huang, experienced a significant drop in share price, nearly 30% in one day, due to investor concerns over slower profit growth forecasts [2] - Despite the drop, shares have since recovered amid a broader stock rally in China, positioning Huang at No. 4 among China's richest with a net worth of $43.9 billion [2] Financial Performance - In Q2 2024, PDD reported a 144% increase in net income to 32 billion yuan ($4.5 billion), although this was lower than the previous quarter's more than threefold increase [3] - The company indicated that future earnings would be impacted by increased investments in its supply chain and a 10 billion yuan reduction in fees charged to vendors [3] Market Position and Competition - PDD's Pinduoduo app remains popular among Chinese consumers seeking discounted products, such as $13 winter coats [4] - The company faces intense competition from rivals Alibaba and JD.com, and is encountering challenges in expanding internationally with its Temu app [4] - Indonesian authorities have requested Apple and Google to block the Temu app from their app stores due to concerns over low-cost goods, although PDD asserts that Temu complies with local laws [4]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong growth stocks can be challenging due to associated risks and volatility [1] Group 1: Company Overview - PDD Holdings Inc. Sponsored ADR is highlighted as a recommended growth stock based on the Zacks Growth Style Score, which evaluates a company's real growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2][10] Group 2: Earnings Growth - PDD Holdings Inc. has a historical EPS growth rate of 290.2%, with projected EPS growth of 83.1% for the current year, significantly outperforming the industry average of 11.1% [5] Group 3: Cash Flow Growth - The year-over-year cash flow growth for PDD Holdings Inc. is 76.3%, which is substantially higher than the industry average of -7.7% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 52.5%, compared to the industry average of 9.7% [7] Group 4: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for PDD Holdings Inc., with the Zacks Consensus Estimate increasing by 1.3% over the past month [9] - Positive trends in earnings estimate revisions correlate strongly with near-term stock price movements, further validating the company's growth potential [8] Group 5: Investment Conclusion - PDD Holdings Inc. has achieved a Growth Score of A and a Zacks Rank of 2, indicating it is a solid choice for growth investors and a potential outperformer [10][11]