10 Most Promising Low-Cost Stocks According to Hedge Funds

6. PDD Holdings Inc. (NASDAQ:PDD)

Number of Hedge Fund Holders: 86

Forward P/E Ratio as of October 13, 2024: 12

PDD Holdings Inc. (NASDAQ:PDD) is one of the most promising low-cost stocks according to hedge funds. The company is a multinational e-commerce group that owns Temu and Pinduoduo, two online retail sites, and holds a 20% market share in China’s e-commerce industry.

Pinduoduo is one of the most prominent online agriculture retail platforms in China. Temu, on the other hand, is an e-commerce platform in the United States and Europe that sells clothing, home decor, beauty, and handmade items.

Temu, known for its notoriously low-priced products and fast deliveries, is set to become one of the most used platforms in the world. Temu has a 20% market share in its home country and is rapidly expanding in Europe and North America, known as the fastest-growing e-commerce platform in the world.

In the second quarter of 2024, PDD Holding’s total revenue reached RMB 97 billion, an 86% increase year-over-year. It also generated an operating profit of $4.5 billion, hinting that it is extremely profitable.

The company has placed significant bets on its cross-border growth, which may have been in jeopardy due to geopolitical tensions at the moment. Conversely, as the Chinese government takes steps to stimulate the economy, PDD Holdings Inc. (NASDAQ:PDD) is expected to accelerate rapidly.