PDD Holdings Inc. Sponsored ADR (PDD) closed the latest trading day at $103.09, indicating a -0.88% change from the previous session's end. This change lagged the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.28%, while the tech-heavy Nasdaq depreciated by 0.1%.
Shares of the company have depreciated by 13.65% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 2.65% and the S&P 500's loss of 4.29%.
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. In the meantime, our current consensus estimate forecasts the revenue to be $14.17 billion, indicating a 17.82% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.99 per share and a revenue of $64.94 billion, indicating changes of +5.92% and +18.74%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PDD Holdings Inc. Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 8.67 right now. This represents a discount compared to its industry's average Forward P/E of 23.44.
Also, we should mention that PDD has a PEG ratio of 0.26. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.39 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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.
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
