PDD Holdings Inc. Sponsored ADR (PDD) closed at $106.88 in the latest trading session, marking a +1.06% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.77% for the day. Meanwhile, the Dow gained 0.76%, and the Nasdaq, a tech-heavy index, added 1.05%.
Shares of the company witnessed a loss of 1.03% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 6.07%, and underperforming the S&P 500's loss of 0.98%.
Analysts and investors alike will be keeping a close eye on the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. 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, our latest consensus estimate is calling for revenue of $17.93 billion, up 18.35% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.48 per share and revenue of $61.14 billion, which would represent changes of -7.42% and +11.8%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for PDD Holdings Inc Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, PDD Holdings Inc. Sponsored ADR holds a Zacks Rank of #3 (Hold).
Digging into valuation, PDD Holdings Inc. Sponsored ADR currently has a Forward P/E ratio of 8.72. This expresses a discount compared to the average Forward P/E of 14.69 of its industry.
One should further note that PDD currently holds a PEG ratio of 0.9. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce was holding an average PEG ratio of 0.86 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 31% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow PDD in the coming trading sessions, be sure to utilize 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
