The most recent trading session ended with PDD Holdings Inc. Sponsored ADR (PDD) standing at $94.15, reflecting a +0.18% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 9.52%. Meanwhile, the Dow gained 7.87%, and the Nasdaq, a tech-heavy index, added 12.16%.
Prior to today's trading, shares of the company had lost 20.34% over the past month. This has lagged the Retail-Wholesale sector's loss of 13.14% and the S&P 500's loss of 13.47% in that time.
The upcoming earnings release of PDD Holdings Inc. Sponsored ADR will be of great interest to investors. In that report, analysts expect PDD Holdings Inc. Sponsored ADR to post earnings of $2.49 per share. This would mark a year-over-year decline of 12.01%. At the same time, our most recent consensus estimate is projecting a revenue of $14.17 billion, reflecting a 17.82% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.99 per share and a revenue of $64.94 billion, representing changes of +5.92% and +18.74%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for PDD Holdings Inc. Sponsored ADR. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.07% downward. Right now, PDD Holdings Inc. Sponsored ADR possesses a Zacks Rank of #3 (Hold).
Looking at valuation, PDD Holdings Inc. Sponsored ADR is presently trading at a Forward P/E ratio of 7.84. Its industry sports an average Forward P/E of 20.05, so one might conclude that PDD Holdings Inc. Sponsored ADR is trading at a discount comparatively.
Also, we should mention that PDD has a PEG ratio of 0.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 1.18 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 51, this industry ranks in the top 21% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many 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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