10 Oversold Value Stocks To Buy Right Now

1. PDD Holdings Inc. (NASDAQ:PDD)

Year-to-Date Decline: 31.29%

Forward PE: 7.25

Number of Hedge Fund Holders: 78

PDD Holdings Inc. (NASDAQ:PDD) is a multinational commerce group owning and operating a portfolio of businesses including Pinduoduo and Temu. While Temu is an online market place, Pinduoduo is an e-commerce platform offering products related to agricultural produce, apparel, shoes, bags, food and beverage, electronic appliances, and others. The firm was founded by Colin Huang in 2015.

PDD has emerged as one of the major e-commerce players in China. As stated by the investment management company, Baron Funds, PDD’s competitive moat lies in its team purchase model that facilitates bulk buying through direct partnerships with manufacturers, thereby eliminating intermediaries and lowering costs. With more demand for affordable products in China alongside small-scale merchants finding alternatives to Alibaba, PDD has driven growth. Even Americans looking for bargains have been heading to Temu, which according to Earnest Analytics, had nearly 17% of the US online discount store market as of last November.

For the third quarter, PDD Holdings Inc. (NASDAQ:PDD) recorded total revenues of RMB99,354.4 million, increasing 44% from RMB68,840.4 million in the same quarter of 2023. Regardless of intense competition and external challenges, the topline growth was good. With the plans to create a healthy and sustainable ecosystem, the firm has been investing in its platform ecosystem through merchant support policies and trust and safety updates. The CEO remains positive about this consistent investment which will be driving impactful results in the long term.

PDD Holdings Inc. (NASDAQ:PDD),  the owner of Temu and Pinduoduo, is a prominent e-commerce player which has seen a growth momentum from both home and abroad. As of Q3, the stock is held by 78 hedge funds.

While we acknowledge the potential of PDD as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than PDD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.