10 Best Affordable Stocks To Buy Right Now

3. PDD Holdings Inc. (NASDAQ:PDD)

Forward P/E Ratio as of September 16: 6.64

Number of Hedge Fund Holders: 86

PDD Holdings Inc. (NASDAQ:PDD) is a global commerce group with a diverse range of businesses, including two key ventures: Pinduoduo and Temu. Pinduoduo is an e-commerce platform offering a wide variety of products, while Temu is an online marketplace specializing in heavily discounted consumer goods.

PDD Holdings Inc. (NASDAQ:PDD)’s second-quarter 2024 earnings per American depositary share (EPADS) reached CNY21.60, reflecting a 140% year-over-year increase and meeting expectations. Revenue surged by 86% to CNY97 billion, driven by strong demand for affordable products, although it fell slightly short of analyst estimates. The company’s net margin improved by 8 percentage points year-over-year, benefiting from operational scaling. Despite this strong performance, PDD Holdings Inc. (NASDAQ:PDD) expects growth to slow due to rising competition and global uncertainties.

Analysts have revised their outlooks on PDD accordingly, with Benchmark lowering its price target to $185 but maintained a buy rating, citing solid fundamentals. Additionally, BofA Securities reduced its target to $170 while also retaining a buy recommendation, highlighting PDD Holdings Inc. (NASDAQ:PDD)’s continued market share gains.

According to Insider Monkey’s Q2 data, 86 hedge funds held long positions in PDD Holdings Inc. (NASDAQ:PDD), up from 76 in the previous quarter. Rajiv Jain’s GQG Partners remains the largest stakeholder, with 10.8 million shares valued at $1.43 billion.