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Summary
Pinduoduo shows strong technical indicators: 8% buy signals, 24.14+ Weighted Alpha, 37.83% annual gain, and a Trend Seeker buy signal since 9/27..
PDD Holdings, based in Dublin, operates Pinduoduo and Temu, focusing on digital economy integration with a market cap of $186 billion and a P/E of 13.94.
Wall Street analysts are bullish: 31 strong buys, 9 buys, 3 holds, with price targets between $120-$235 and a consensus of $164..
PDD’s competitive advantages include a strong supply chain and value-for-money strategy, appealing amid rising living costs, with significant growth expected in revenue and earnings.
The Chart of the Day belongs to the Chinese Internet retailer Pinduoduo (PDD) (Yes I realize it is headquartered in Ireland). I found the stock by using Barchart’s powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. The Trend Seeker signaled a buy on 9/27. 
PDD Price vs Daily Moving Averages
PDD Holdings Inc., a multinational commerce group, owns and operates a portfolio of businesses. It operates Pinduoduo, an e-commerce platform that offers products in various categories, including agricultural produce, apparel, shoes, bags, mother and childcare products, food and beverage, electronic appliances, furniture and household goods, cosmetics and other personal care, sports and fitness items and auto accessories; and Temu, an online marketplace. It focuses on bringing businesses and people into the digital economy. The company was formerly known as Pinduoduo Inc. and changed its name to PDD Holdings Inc. in February 2023. The company was incorporated in 2015 and is based in Dublin, Ireland. Barchart’s Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
8% technical buy signals
24.14+ Weighted Alpha
37.83% gain in the last year
.69 – 60 month Beta
Trend Seeker buy signal
Above its 20, 50 and 100 day moving averages
10 new highs and up 40.69% in the last month
Relative Strength Index 72.30%
Technical support level at $132.03
Recently traded at $135.29 with 50 day moving average of $119.23
Fundamental Factors:
Market Cap $186 billion
P/E 13.94
Wall Street analysts predict revenue will grow 65.50% this year and another 28.10% next year
Earnings are estimated to increase 85.20% this year, an additional 19.00% next year and continue to compound at an annual rate of 4.17% for the next 5 years
Analysts and Investor Sentiment — I don’t buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it’s hard to make money swimming against the tide:
Wall street analysts issued 31 strong buy, 9 buy and 3 hold opinions on the stock
Analysts; price targets ate between $120 and $235 with a consensus of $164
Value Line gave the stock its average rating of 3
CFRAs MarketScope rates the stock a 4 star strong buy and comments:” We expect PDD’s value-for-money proposition to appeal to consumers globally amid rising living costs. Its strategy of cultivating merchants to expand its value-for-money products and strong supply chain create significant competitive advantages.”
MorningStar give the stock its above average rating of 4 with a Fair Value of $171 or 20% under valued and comments:” To fence off challenges, PDD will invest resolutely into the business. We believe this is a negative read-across for peers as this means more competition, and it will result in higher costs and lower margin for Alibaba Group and JD.com in order to maintain their GMV growth.”
51,490 investors monitor the stock on Seeking Alpha
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