In the latest trading session, PDD Holdings Inc. Sponsored ADR (PDD) closed at $131.56, marking a +2.4% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.07%. Elsewhere, the Dow saw an upswing of 1.12%, while the tech-heavy Nasdaq appreciated by 1.37%.
The stock of company has fallen by 0.76% in the past month, leading the Retail-Wholesale sector's loss of 5.23% and undershooting the S&P 500's gain of 1.08%.
The investment community will be paying close attention to the earnings performance of PDD Holdings Inc. Sponsored ADR in its upcoming release. The company is forecasted to report an EPS of $2.21, showcasing a 16.6% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $15.21 billion, showing a 7.44% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.62 per share and revenue of $59.82 billion, which would represent changes of -15.02% and +9.38%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for PDD Holdings Inc Sponsored ADR. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, PDD Holdings Inc. Sponsored ADR boasts a Zacks Rank of #1 (Strong Buy).
In the context of valuation, PDD Holdings Inc. Sponsored ADR is at present trading with a Forward P/E ratio of 13.36. This expresses a discount compared to the average Forward P/E of 21.03 of its industry.
Also, we should mention that PDD has a PEG ratio of 1.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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. Currently, this industry holds a Zacks Industry Rank of 57, positioning it in the top 24% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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