PDD Holdings Inc. Sponsored ADR (PDD) closed at $94.36 in the latest trading session, marking a +0.72% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 2.36%. Meanwhile, the Dow experienced a drop of 2.48%, and the technology-dominated Nasdaq saw a decrease of 2.55%.
Shares of the company witnessed a loss of 26.02% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 4.2% and the S&P 500's loss of 5.6%.
Investors will be eagerly watching for the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.49, signifying a 12.01% drop compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $14.17 billion, up 17.82% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $11.99 per share and revenue of $64.94 billion. These totals would mark changes of +5.92% and +18.74%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PDD Holdings Inc. Sponsored ADR. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.07% lower. At present, PDD Holdings Inc. Sponsored ADR boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, PDD Holdings Inc. Sponsored ADR is holding a Forward P/E ratio of 7.81. This represents a discount compared to its industry's average Forward P/E of 22.7.
We can also see that PDD currently has a PEG ratio of 0.24. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 1.28 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 49, placing it within the top 20% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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