5 Most Undervalued Foreign Stocks to Buy Now

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1. PDD Holdings Inc. (NASDAQ:PDD)

Forward Price to Earnings Ratio: 7.93

Number of Hedge Fund Holders: 67

PDD Holdings Inc. (NASDAQ:PDD) is one of the Most Undervalued Foreign Stocks to Buy Now. On May 11, Reuters reported that Shein has accused PDD Holdings Inc. (NASDAQ:PDD)’s platform Temu of copyright infringement “on an industrial scale.” The company alleged that Temu used thousands of Shein’s product photos to advertise copycat clothing on its platform.

The report  noted that Shein’s lawyer described it as an attempt to gain an unfair advantage by piggybacking on a more established competitor. On the other hand, Temu in the trial that opened in London’s High Court denied the allegations and framed the lawsuit as a competitive tactic rather than a genuine intellectual property dispute.

Shein’s lawyer Benet ​Brandreth noted that Temu has dropped its defense against the copyright claims covering nearly 2,300 photos taken by Shein employees. ​Brandreth compared this to pleading guilty at the last moment. On the other hand Temu has filed a counter-claim, seeking damages after an earlier injunction forced it to remove thousands of product listings.

Separately, Temu alleges that Shein broke competition law by locking fast-fashion suppliers into exclusive agreements. This claim is expected to be heard at a separate trial next year.

That said, PDD Holdings Inc. (NASDAQ:PDD) is expected to release its fiscal first quarter 2026 earnings on May 27. The Street expects the company to post revenue around $16.08 billion, along with a GAAP EPS of $2.15.

PDD Holdings Inc. (NASDAQ:PDD) operates e-commerce platforms including Temu, offering a wide range of consumer products globally.

While we acknowledge the potential of PDD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PDD and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best Stocks to Buy While the Market Is Down and 14 Stocks That Will Double in the Next 5 Years. 

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