PDD Holdings Inc (PDD, Financial) has seen a significant uptick in its stock performance over the past week and three months. The company's stock price has gained 2.88% in the past week and has seen a substantial increase of 36.92% over the past three months. This surge in stock price has been accompanied by a rise in the company's GF Value, which currently stands at $121.3, indicating that the stock is modestly undervalued. This is a notable improvement from three months ago when the GF Value was $119.76, suggesting that the stock was significantly undervalued.
Introduction to PDD Holdings Inc
PDD Holdings Inc, a multinational commerce group, operates in the Retail - Cyclical industry. The company aims to bring more businesses and people into the digital economy, thereby benefiting local communities and small businesses. PDD Holdings has built a robust network of sourcing, logistics, and fulfillment capabilities that support its underlying businesses. With a market cap of $134.56 billion and a current stock price of $101.28, PDD Holdings Inc is a significant player in the industry.
Profitability Analysis
PDD Holdings Inc's profitability rank stands at 4/10, indicating moderate profitability. This Profitability Rank is a measure of how profitable a company is and how likely the company's business will stay that way. The company's operating margin is 23.69%, which is better than 96.4% of companies in the same industry. This Operating Margin is calculated as Operating Income divided by its Revenue. Furthermore, the company's ROE, ROA, and ROIC are all significantly higher than the industry average, indicating a strong return on investment. Over the past 10 years, the company's profitability has been better than 8.9% of companies in the same industry.
Growth Potential
PDD Holdings Inc's growth rank is 7/10, indicating strong growth potential. This Growth Rank measures the growth of a company in terms of its revenue and profitability. The company's 3-year and 5-year revenue growth rates per share are both significantly higher than the industry average. Furthermore, the company's future revenue and EPS growth estimates are also higher than the industry average, suggesting a promising outlook.
Major Stock Holders
The top three holders of PDD Holdings Inc's stock include Baillie Gifford (Trades, Portfolio), Ray Dalio (Trades, Portfolio), and Ken Fisher (Trades, Portfolio). Baillie Gifford (Trades, Portfolio) holds the most significant number of shares, with 31,167,044 shares, representing 2.35% of the company's stock. Ray Dalio (Trades, Portfolio) holds 2,731,512 shares, accounting for 0.21% of the company's stock, while Ken Fisher (Trades, Portfolio) holds 1,834,029 shares, representing 0.14% of the company's stock.
Competitors in the Retail - Cyclical Industry
PDD Holdings Inc faces competition from several companies in the Retail - Cyclical industry. The company's main competitors include Sea Ltd with a market cap of $24.27 billion, MercadoLibre Inc with a market cap of $59.86 billion, and eBay Inc with a market cap of $22.58 billion.
Conclusion
In conclusion, PDD Holdings Inc has shown impressive stock performance, profitability, and growth potential. The company's stock has seen a significant increase over the past three months, and its GF Value suggests that the stock is modestly undervalued. With a profitability rank of 4/10 and a growth rank of 7/10, the company shows promise for future growth. However, it faces competition from several companies in the Retail - Cyclical industry. Despite this, PDD Holdings Inc's current position and future prospects in the industry remain strong.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
