PDD Holdings Inc. Sponsored ADR (PDD) closed the most recent trading day at $106.31, moving +1.01% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.07% for the day. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq added 0.03%.
The company's shares have seen an increase of 3.57% over the last month, surpassing the Retail-Wholesale sector's gain of 1.87% and falling behind the S&P 500's gain of 3.94%.
The upcoming earnings release of PDD Holdings Inc. Sponsored ADR will be of great interest to investors. The company is expected to report EPS of $2.04, down 36.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.28 billion, up 6.91% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.79 per share and revenue of $59.22 billion, indicating changes of -22.35% and +8.28%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for PDD Holdings Inc Sponsored ADR. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PDD Holdings Inc. Sponsored ADR presently features a Zacks Rank of #5 (Strong Sell).
In the context of valuation, PDD Holdings Inc. Sponsored ADR is at present trading with a Forward P/E ratio of 11.98. Its industry sports an average Forward P/E of 25, so one might conclude that PDD Holdings Inc. Sponsored ADR is trading at a discount comparatively.
We can also see that PDD currently has a PEG ratio of 1.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.44.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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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