7 Cheap Chinese Stocks To Invest In Now

1. PDD (NASDAQ:PDD)   

Number of Hedge Fund Investors: 86  

Forward P/E Ratio as of September 29: 11.27 

PDD Holdings (NASDAQ:PDD) is a global commerce leader with a diverse portfolio of businesses, including Pinduoduo and Temu. Pinduoduo is a comprehensive e-commerce platform offering a wide range of products, from agricultural produce and apparel to electronics and furniture. Meanwhile, Temu is an online marketplace specializing in heavily discounted consumer goods.

PDD Holdings (NASDAQ:PDD) is making significant investments in its global business. The company is streamlining supply chain efficiency by introducing customized fulfillment solutions in various markets and partnering with high-quality merchants worldwide. Additionally, it is bolstering its legal and compliance capabilities to create a secure and trustworthy shopping environment while staying ahead of the curve by researching laws and regulations in its operating markets.

Furthermore, PDD Holdings (NASDAQ:PDD) is prioritizing AI technology and operational enhancements to elevate the overall user experience. This enables the company to cater to the diverse needs and quality standards of global users, ultimately driving value for both consumers and merchants. As a result, the platform is expected to gain greater recognition and acceptance in local communities.

Notably, PDD (NASDAQ:PDD) is considered one of the most undervalued stocks to buy right now. The company’s stock is trading 11.27 times it forward year earnings, which represents an almost 35% discount to the sector median of 17.34. The company’s earnings are expected to grow by 59.73% this year. Industry analysts have a consensus Buy rating on the stock, with an average share price target of $160.87, indicating a potential upside of 17% from its current level.

As of the second quarter, 86 hedge funds held stakes in the company worth $8.10 billion. According to Insider Monkey’s hedge fund database, GQG Partners is the largest shareholder in the company, with stakes valued at $1.43 billion.

While we acknowledge the potential of PDD (NASDAQ:PDD) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher 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.

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