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Top Stock Picks for Week of June 17, 2024

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PDD Holdings Inc. (PDD - Free Report) is a multinational commerce group which owns and operates a portfolio of businesses. PDD is growing earnings faster than almost any public e-commerce company. Wall Street sees the rapid growth continuing and expects EPS growth of about 97% next quarter and EPS growth of 85% for the full year 2024. Though PDD’s expectations are high, the company has illustrated that it can consistently beat Wall Street’s expectations. Over the past four quarters, PDD has beat EPS expectations by an average of 45%. PDD has gained significant popularity in a relatively short period, becoming one of the largest e-commerce companies in China. Temu, PDD’s e-commerce website, has put PDD on the map. PDD’s unique Temu platform is helping e-commerce shoppers fight inflation while growing the company’s earnings rapidly.

Frontdoor Inc. (FTDR - Free Report) is the parent company of home service plan brands consisting of American Home Shield, HSA, Landmark and OneGuard. The firm is benefiting from impressive customer retention rates. Thanks to the robust awareness of the Frontdoor brand, it has been shifting its attention toward capitalizing on customer demand. Frontdoor’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 286.8%. It currently sports a Zacks Rank #1 (Strong Buy). FTDR recently surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend. With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on FTDR for more gains in the near future.


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