PDD Holdings Inc. Sponsored ADR (PDD) ended the recent trading session at $131.25, demonstrating a -1.88% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. At the same time, the Dow lost 0.52%, and the tech-heavy Nasdaq lost 0.08%.
The company's shares have seen an increase of 7.29% over the last month, surpassing the Retail-Wholesale sector's loss of 3.47% and the S&P 500's gain of 4.03%.
Market participants will be closely following the financial results of PDD Holdings Inc. Sponsored ADR in its upcoming release. It is anticipated that the company will report an EPS of $2.21, marking a 16.6% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $15.21 billion, up 7.44% from the year-ago period.
PDD's full-year Zacks Consensus Estimates are calling for earnings of $9.62 per share and revenue of $59.82 billion. These results would represent year-over-year changes of -15.02% and +9.38%, respectively.
Any recent changes to analyst estimates for PDD Holdings Inc. Sponsored ADR should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, PDD Holdings Inc. Sponsored ADR possesses a Zacks Rank of #1 (Strong Buy).
With respect to valuation, PDD Holdings Inc. Sponsored ADR is currently being traded at a Forward P/E ratio of 13.91. This represents a discount compared to its industry average Forward P/E of 21.82.
Also, we should mention that PDD has a PEG ratio of 1.44. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Internet - Commerce industry stood at 1.46 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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