PDD Holdings Inc. Sponsored ADR (PDD) ended the recent trading session at $94.07, demonstrating a -0.75% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.17%. Meanwhile, the Dow experienced a drop of 0.39%, and the technology-dominated Nasdaq saw a decrease of 0.05%.
The company's shares have seen a decrease of 26.47% over the last month, not keeping up with the Retail-Wholesale sector's loss of 2.42% and the S&P 500's loss of 3.94%.
Market participants will be closely following the financial results of PDD Holdings Inc. Sponsored ADR in its upcoming release. On that day, PDD Holdings Inc. Sponsored ADR is projected to report earnings of $2.49 per share, which would represent a year-over-year decline of 12.01%. Meanwhile, the latest consensus estimate predicts the revenue to be $14.17 billion, indicating a 17.82% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $11.99 per share and a revenue of $64.94 billion, demonstrating changes of +5.92% and +18.74%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for PDD Holdings Inc. Sponsored ADR. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 4.07% lower. PDD Holdings Inc. Sponsored ADR currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PDD Holdings Inc. Sponsored ADR has a Forward P/E ratio of 7.9 right now. For comparison, its industry has an average Forward P/E of 22.26, which means PDD Holdings Inc. Sponsored ADR is trading at a discount to the group.
It is also worth noting that PDD currently 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. PDD's industry had an average PEG ratio of 1.31 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PDD Holdings Inc. Sponsored ADR (PDD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
