10 Dirt Cheap Stocks To Invest In Now

5. PDD Holdings Inc. (NASDAQ:PDD)

Forward P/E Ratio: 7.51

Earnings Growth This Year: 6.61%

Number of Hedge Fund Holders: 85

PDD Holdings Inc. (NASDAQ:PDD) is another multinational e-commerce company that operates renowned platforms including Pinduoduo, and Temu. While Pinduoduo is a Chinese e-commerce platform, Temu operates globally. The company is heavily invested in technology and AI, along with a vast network of logistics.

During the fiscal fourth quarter of 2024, PDD Holdings Inc. (NASDAQ:PDD) grew its revenue by 24% year-over-year to reach RMB 110,610.1 million. Notably, its operating profit also grew 14% during the same time to RMB 25,592.2 million. Moreover, GreenWood Investors mentioned the company in its Q4 2024 investor letter. The fund admired the innovative business model of the company along with its ability to grow rapidly. The fund also highlighted the ability of PDD Holdings Inc. (NASDAQ:PDD) to grow its gross merchandising value 3x times to reach a comparable value with other e-commerce giants. It is one of the dirt-cheap stocks to invest in now.

GreenWood Investors stated the following regarding PDD Holdings Inc. (NASDAQ:PDD) in its Q4 2024 investor letter:

“Aside from transitory foreign exchange translation losses (as opposed to trading losses), the two other notable detractors from our portfolio were MEI Pharma and PDD Holdings Inc. (NASDAQ:PDD) in 2024.

PDD Holdings founder Colin Huang is who inspired us to “run 3x faster,” as the relentless corporate culture of PDD has built an e-commerce company with roughly the same GMV (gross merchandise value) of Amazon in one-third the time it took Amazon to build itself. Shares reacted negatively when the company decided to reinvest its record margins into even faster growth and creating a healthier supplier ecosystem. As it looks set to create a second Amazon with its international site Temu, we are highly attracted to the opportunity. Sales are growing 4x faster than Amazon’s, yet shares are priced at less than a quarter of the Amazon earnings multiple.

PDD is a perfect example of why we want to look outside of the “Big Ten” companies that are nearly a third of global market indices. We would not want to compete with the demanding corporate culture of PDD and Temu. Its operating model is relentless at identifying efficiency throughout the manufacturing and selling supply chain. Not only is it a mor formidable competitor than Amazon, and growing much faster, but the valuation is 4x more attractive than Amazon’s…” (Click here to read the full text)