12 High Growth Low PE Stocks to Buy

1. PDD Holdings Inc. (NASDAQ:PDD)

5-Year Revenue CAGR: 71.61%

Number of Hedge Fund Holders: 78

Forward P/E as of January 29: 8.70

PDD Holdings Inc. (NASDAQ:PDD) is an internet retail company that owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, and electronic appliances. It stands out as a high-growth, low P/E stock to buy, given the company’s exposure to the burgeoning Chinese e-commerce landscape.

PDD Holdings Inc. (NASDAQ:PDD) has succeeded in carving a niche as a discount marketplace for shoppers in low-tier cities in China. Consequently, it is increasingly capitalizing on the growing demand for fresh farm produce through its online agricultural platform. Over the past five years, its revenue has grown at a compound annual growth rate of 71%, much higher than the 20% growth for Alibaba and 19% for JD.com, its biggest competitor.

Analysts expect PDD Holdings Inc. (NASDAQ:PDD) to grow at a CAGR of 38% to 2026, driven by market share gains in China. Expansion into international markets through the Temu platform is expected to support and accelerate growth. Temu increasingly connects Chinese sellers and overseas buyers, allowing PDD to diversify its revenue base. The fact that antitrust authorities are not targeting the company in China affirms its long-term prospects.

As we acknowledge the growth potential of PDD Holdings Inc. (NASDAQ:PDD), our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter timeframe. If you are looking for an 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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