PDD Holdings Inc. Sponsored ADR (PDD) ended the recent trading session at $116.75, demonstrating a -1.44% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.02% for the day. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.33%.
Heading into today, shares of the company had gained 12.66% over the past month, outpacing the Retail-Wholesale sector's gain of 4.9% and the S&P 500's gain of 4.93%.
Analysts and investors alike will be keeping a close eye on the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. The company is expected to report EPS of $2.04, down 36.25% from the prior-year quarter. 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 entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.79 per share and a revenue of $59.22 billion, representing changes of -22.35% and +8.28%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for PDD Holdings Inc Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. PDD Holdings Inc. Sponsored ADR currently has a Zacks Rank of #5 (Strong Sell).
In the context of valuation, PDD Holdings Inc. Sponsored ADR is at present trading with a Forward P/E ratio of 13.48. This valuation marks a discount compared to its industry average Forward P/E of 23.13.
It is also worth noting that PDD currently has a PEG ratio of 1.46. 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 1.66 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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