In the latest close session, PDD Holdings Inc. Sponsored ADR (PDD) was up +1.8% at $112.04. The stock's change was more than the S&P 500's daily gain of 1.47%. Elsewhere, the Dow gained 1.34%, while the tech-heavy Nasdaq added 1.95%.
Shares of the company have appreciated by 6.25% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 1.38%, and the S&P 500's gain of 0.64%.
Analysts and investors alike will be keeping a close eye on the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.04, marking a 36.25% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.28 billion, up 6.91% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.79 per share and a revenue of $59.22 billion, indicating changes of -22.35% and +8.28%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PDD Holdings Inc Sponsored ADR. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business 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. The Zacks Consensus EPS estimate remained stagnant within the past month. PDD Holdings Inc. Sponsored ADR is currently a Zacks Rank #3 (Hold).
In terms of valuation, PDD Holdings Inc. Sponsored ADR is currently trading at a Forward P/E ratio of 12.53. This signifies a discount in comparison to the average Forward P/E of 20.11 for its industry.
One should further note that PDD currently holds a PEG ratio of 1.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 1.56 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 39% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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