The most recent trading session ended with PDD Holdings Inc. Sponsored ADR (PDD) standing at $118.89, reflecting a -0.47% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.1%. On the other hand, the Dow registered a loss of 0.21%, and the technology-centric Nasdaq increased by 0.72%.
Prior to today's trading, shares of the company had gained 26.98% over the past month. This has outpaced the Retail-Wholesale sector's gain of 10.27% and the S&P 500's gain of 9.86% in that time.
The investment community will be closely monitoring the performance of PDD Holdings Inc. Sponsored ADR in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.49, marking a 12.01% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.17 billion, up 17.82% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $11.99 per share and revenue of $64.94 billion, which would represent changes of +5.92% and +18.74%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PDD Holdings Inc. Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, PDD Holdings Inc. Sponsored ADR possesses a Zacks Rank of #3 (Hold).
In terms of valuation, PDD Holdings Inc. Sponsored ADR is currently trading at a Forward P/E ratio of 9.96. For comparison, its industry has an average Forward P/E of 24.58, which means PDD Holdings Inc. Sponsored ADR is trading at a discount to the group.
Investors should also note that PDD has a PEG ratio of 0.3 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. PDD's industry had an average PEG ratio of 1.4 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.
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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