In the latest close session, PDD Holdings Inc. Sponsored ADR (PDD) was down 1.14% at $102.15. The stock's performance was behind the S&P 500's daily loss of 0.51%. On the other hand, the Dow registered a gain of 0.53%, and the technology-centric Nasdaq decreased by 1.51%.
Shares of the company witnessed a loss of 15.77% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.66%, and the S&P 500's gain of 0.93%.
Investors will be eagerly watching for the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. In that report, analysts expect PDD Holdings Inc. Sponsored ADR to post earnings of $2.88 per share. This would mark year-over-year growth of 4.35%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.93 billion, up 18.35% from the year-ago period.
PDD's full-year Zacks Consensus Estimates are calling for earnings of $10.48 per share and revenue of $60.77 billion. These results would represent year-over-year changes of -7.42% and 0%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for PDD Holdings Inc Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.2% rise in the Zacks Consensus EPS estimate. As of now, PDD Holdings Inc. Sponsored ADR holds a Zacks Rank of #3 (Hold).
In terms of valuation, PDD Holdings Inc. Sponsored ADR is presently being traded at a Forward P/E ratio of 8.52. This represents a discount compared to its industry average Forward P/E of 15.64.
We can also see that PDD currently has a PEG ratio of 0.88. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 167, finds itself in the bottom 32% echelons 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.
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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