The chart of the day belongs to the online retailer PDD Holdings (PDD), states Jim Van Meerten of BarChart.com.
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 a Trend Seeker buy signal. I then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 11 / 7 the stock gained 29.34%.
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. PDD Holdings Inc. 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:
- 100% technical buy signals
- 81.08+ Weighted Alpha
- 91.33% gain in the last year
- Trend Seeker buy signal
- Above its 20, 50, and 100-day moving averages
- 11 new highs and up 30.85% in the last month
- Relative Strength Index 84.42%
- Technical support level at $134.76
- Recently traded at $141.73 with a 50-day moving average of $107.06
Fundamental Factors:
- Market Cap $183 billion
- P/E 28.50
- Revenue is expected to grow 62.30% this year and another 31.50% next year
- Earnings are estimated to increase 38.70% this year, an additional 24.70% next year, and continue to compound at an annual rate of 4.05% for the next five 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 gave 20 strong buy, 21 buy, and two hold opinions on the stock
- Analysts' price targets are between $112 and $213 with a consensus of $156 for a 10% gain
- The individual investors following the stock on Motley Fool voted 54 to 7 for the stock to beat the market with the most experienced investors voting four to three for the same result
- Value Line gives it an average rating of three but notes a five-year total return of 475%
- CFRAs MarketScope rates it a hold
- 41,390 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least weekly.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
