PDD Holdings Inc. Sponsored ADR (PDD) closed the most recent trading day at $100.22, moving -4.16% from the previous trading session. This change lagged the S&P 500's 1.57% loss on the day. Elsewhere, the Dow saw a downswing of 1.34%, while the tech-heavy Nasdaq depreciated by 2.04%.
Prior to today's trading, shares of the company had lost 3.04% was narrower than the Retail-Wholesale sector's loss of 4.94% and lagged the S&P 500's loss of 0.29%.
The investment community will be paying close attention to the earnings performance of PDD Holdings Inc. Sponsored ADR in its upcoming release. The company's earnings per share (EPS) are projected to be $2.88, reflecting a 4.35% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.93 billion, up 18.35% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.48 per share and revenue of $60.77 billion. These totals would mark changes of -7.42% and +11.12%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for PDD Holdings Inc Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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, there's been a 1.2% rise in the Zacks Consensus EPS estimate. PDD Holdings Inc. Sponsored ADR currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, PDD Holdings Inc. Sponsored ADR is currently exchanging hands at a Forward P/E ratio of 8.62. This indicates a discount in contrast to its industry's Forward P/E of 14.38.
Investors should also note that PDD has a PEG ratio of 0.89 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 0.9.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 179, positioning it in the bottom 27% of all 250+ industries.
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.
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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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