We've compiled it recently 10 Most Profitable Cheap Stocks to Buy Now. In this article, we will take a look at the position of PDD Holdings Inc. (NASDAQ:PDD) representing other most profitable cheap stocks.
U.S. stocks rose Friday, May 2, as the S&P 500, Dow Jones industrial average and technology-heavy Nasdaq stocks all showed impressive returns. The S&P 500 rose by nearly 1.5%, marking the longest winning streak for the S&P 500 since November 2004 was the ninth consecutive day. The Dow Jones Index rose 1.4% to report its ninth straight win. Meanwhile, Nasdaq shares rose about 1.5%.
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The rally came after China said it was open to trade talks and better than expected U.S. jobs report. In April, the U.S. economy increased 177,000 non-agricultural wages, which exceeded expectations of 138,000 economists. The unemployment rate remained stable at 4.2%. The data shows that despite the uncertainty of the stock market in April due to tariff issues, the labor market is resilient.
Investors are also encouraged to pass signs that the U.S.-China trade war may be relaxing. China said Friday it is evaluating recent U.S. trade negotiation proposals to see how severe the Trump administration has changed its policy stance. China's Commerce Minister said that if the United States agrees to withdraw from reciprocity tariffs, it will "open the door." These comments help reduce concerns about tariffs reducing the risk of economic slowdown.
Overall, people hope to improve U.S.-China relations, coupled with solid work growth, will help build confidence in Wall Street.
To compile a list of the 10 most profitable cheap stocks we are buying now, we used the Finviz Stock Filter to find stocks with a forward P/E ratio of less than 15. We made the results based on market cap and selected revenue as of April 29, 2025, which we rated our forward earnings at 15 times. Next step. More than $1 billion. Finally, we focus on the top 10 most popular stocks that institutional investors like. Data on hedge fund sentiment around each stock are taken from Insider Monkey’s Q4 2024 database, which has over 1,000 elite hedge funds. Then, based on the number of hedge funds holding shares in the fourth quarter of 2024, the 10 most profitable cheap stocks currently purchased are now ranked in ascending order.
Why do we care about the work of hedge funds? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our quarterly newsletter strategy selects 14 small and large stocks every quarter, returning 373.4% since May 2014, exceeding 218 percentage points. ((See more details here).
Close-up of customers using the company's e-commerce platform while shopping online.
Forward P/E: 8.33
TTM Net Income: $15.18 billion
Number of hedge fund holders: 85
PDD Holdings Inc. (NASDAQ: PDD), formerly Pinduoduo Inc., is a Chinese company operated as a group of multinational corporations. It owns and operates a range of businesses, known primarily for its e-commerce platforms Pinduoduo and Temu. Temu is a rapidly growing global platform. It offers a wide range of products at competitive prices. PDD Holdings Inc. (NASDAQ:PDD) also builds an impressive procurement, logistics and fulfillment capabilities network to support its business. PDD is now one of the most profitable stocks.
On April 28, Citi lowered its price target for PDD Holdings Inc. (NASDAQ:PDD) from $150 to $127 and maintained a "neutral" rating. The company hopes the company reports its first-quarter results by the end of May and sees "several uncertainties." Citi analysts believe that it is possible to temporarily increase U.S. sales as buyers try to make purchases before prices rise before new tariffs take effect. The company notes that PDD Holdings Inc. (NASDAQ:PDD) is moving from a fully managed to semi-managed business model, which could impact the growth of its transaction services revenue. Citi expects PDD's share price to remain within a certain range until clear on how the new tariffs will affect the business until investors are assured that concerns related to Delisting are being resolved.
Overall, PDD Ranked 10th On the list of the most profitable cheap stocks we are going to buy now. Although we acknowledge the potential of PDD as an investment, our belief is that certain AI stocks offer higher returns in a shorter time frame and offer greater hope in this. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than PDD but have less than 5 times its earnings, check out our report Cheapest AI stocks.
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Disclosure: None. This article was originally published in Internal monkey.