11 Most Profitable Cheap Stocks to Invest In Now

8. PDD Holdings Inc. (NASDAQ:PDD)

Forward P/E: 8.89

Profit Margin: 24.43%

Net Income: $14.37 Billion

Number of Hedge Fund Holders: 73

PDD Holdings Inc. (NASDAQ:PDD) is one of the most profitable cheap stocks to invest in now. On January 15, Morgan Stanley reaffirmed its Overweight rating on PDD Holdings Inc. (NASDAQ:PDD) with a $148 price target but removed the stock from its Top Pick list because of rising regulatory risks and broader market uncertainty affecting Chinese internet companies.

Morgan Stanley pointed out that “the investigation into food delivery platforms launched by The General Office of Anti-Monopoly and Anti-Unfair Competition Commission” has heightened uncertainty for the sector. According to the firm, a slower recovery in consumer spending in China could pose additional headwinds for e-commerce platforms, including PDD Holdings Inc. (NASDAQ:PDD), in 2026. Morgan Stanley also identified intense competition in China’s e-commerce market as another factor weighing on the company’s outlook. Despite this, the firm remains positive on PDD Holdings Inc. (NASDAQ:PDD) with an Overweight rating.

Previously, on January 6, Freedom Capital Markets increased its price target on PDD Holdings Inc. (NASDAQ:PDD) from $140 to $170 and kept its Buy rating. The research firm pointed out that the company has shown resilience by adjusting to US tariffs and the removal of the de minimis duty-free threshold on shipments from China.

However, despite the increase in price target, Freedom Capital Markets cautioned that pressure on margins is expected to continue, at least in the medium term, as PDD Holdings Inc. (NASDAQ:PDD) focuses on long-term investments.

PDD Holdings Inc. (NASDAQ:PDD), formerly Pinduoduo Inc., is a multinational commerce group best known for its e-commerce platforms, Pinduoduo and Temu.