10 Best High Volume Stocks To Buy According to Hedge Funds

6. PDD Holdings Inc. (NASDAQ:PDD)

Avg Volume: 11.14 million

Quarterly Revenue Growth: 79.95%

Number of Hedge Fund Holders: 86

PDD Holdings Inc. (NASDAQ:PDD) is a global commerce group with a diverse portfolio that includes two major ventures: Pinduoduo, an e-commerce platform, and Temu, an online marketplace.

The company’s non-GAAP net profit for the latest quarter surged 125.5% year-over-year, reaching RMB 34.4 billion, exceeding expectations thanks to stronger-than-expected gross profit margins and strict expense control. Earnings per American depositary share (EPADS) for 2024 increased by 140% year-over-year, aligning with projections. Revenue also climbed 86% year-over-year to CNY 97 billion. However, management has adjusted its operating profit margin forecast downward for the second half of 2024.

In light of these developments, China Galaxy International anticipates PDD’s revenue will grow by 42% and its non-GAAP net profit will rise by 33% year-over-year in the third quarter of 2024. The firm maintains an “Add” rating, now with a revised discounted cash flow (DCF)-based target price of $168.

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