PDD Holdings Inc. Sponsored ADR (PDD) ended the recent trading session at $102.41, demonstrating a -2.38% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.14%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 0.27%.
Prior to today's trading, shares of the company had gained 4.3% outpaced the Retail-Wholesale sector's gain of 2.13% and the S&P 500's gain of 3.97%.
Market participants will be closely following the financial results of PDD Holdings Inc. Sponsored ADR in its upcoming release. The company is forecasted to report an EPS of $2.04, showcasing a 36.25% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $14.28 billion, indicating a 6.91% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.79 per share and revenue of $59.22 billion, which would represent changes of -22.35% and +8.28%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PDD Holdings Inc Sponsored ADR. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, PDD Holdings Inc. Sponsored ADR possesses a Zacks Rank of #5 (Strong Sell).
Looking at valuation, PDD Holdings Inc. Sponsored ADR is presently trading at a Forward P/E ratio of 11.94. This valuation marks a discount compared to its industry average Forward P/E of 21.74.
Investors should also note that PDD has a PEG ratio of 1.3 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.38 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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PDD Holdings Inc. Sponsored ADR (PDD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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