12 Best Grocery Store Stocks to Buy Now

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10. Dingdong (Cayman) Limited (NYSE:DDL)

Number of Hedge Fund Holders: 16

Dingdong (Cayman) Limited (NYSE:DDL) is a China-based e-commerce company that delivers groceries and other daily life necessities directly to users. Its offerings include fresh produce, meat, seafood, and other items. Its frontline fulfillment grid comprises over 950 frontline fulfillment stations across 29 Chinese cities. The grid is also supported by around 40 regional processing centers that package, sort, label, and store raw products before fulfillment.

The company reported a 28.3% year-over-year growth in gross merchandise value (GMV) for fiscal Q3 2024, with all its regions experiencing positive growth. Fiscal Q3 2024 marked the third consecutive quarter of GMV growth, and set a new quarterly high for the company. Its net income grew by 6,240.6% year-over-year, marking record highs in Dingdong (Cayman) Limited’s (NYSE:DDL) history.

As of fiscal Q3 2024, the company has attained non-GAAP profitability for the eighth consecutive quarter, GAAP profitability for the third consecutive quarter, and revenue growth on a year-over-year basis for three straight quarters. Its advanced supply chain capabilities and data algorithms enable it to achieve significant operational efficiency, with fulfillment expenses as a percentage of revenue decreasing to 21.4% from 23.2%. Overall, Dingdong (Cayman) Limited (NYSE:DDL) appears well-positioned to maintain the current growth trajectory in China’s fresh grocery e-commerce market.

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