In the latest market close, PDD Holdings Inc. Sponsored ADR (PDD) reached $110.79, with a -0.12% movement compared to the previous day. This change was narrower than the S&P 500's daily loss of 0.64%. Meanwhile, the Dow experienced a drop of 0.24%, and the technology-dominated Nasdaq saw a decrease of 0.74%.
Coming into today, shares of the company had gained 6.44% in the past month. In that same time, the Retail-Wholesale sector gained 0.16%, while the S&P 500 gained 0.38%.
The investment community will be closely monitoring the performance of PDD Holdings Inc. Sponsored ADR in its forthcoming earnings report. In that report, analysts expect PDD Holdings Inc. Sponsored ADR to post earnings of $2.49 per share. This would mark a year-over-year decline of 12.01%. Simultaneously, our latest consensus estimate expects the revenue to be $14.17 billion, showing a 17.82% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $11.99 per share and a revenue of $64.94 billion, representing changes of +5.92% and +18.74%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PDD Holdings Inc. Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. PDD Holdings Inc. Sponsored ADR is currently a Zacks Rank #3 (Hold).
Investors should also note PDD Holdings Inc. Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 9.25. This denotes a discount relative to the industry's average Forward P/E of 23.5.
One should further note that PDD currently holds a PEG ratio of 0.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.47.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 88, finds itself in the top 36% 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.
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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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