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Is PDD Holdings (PDD) A Buy Ahead of Q2 Earnings Announcement?
Multinational commerce company PDD Holdings (PDD - Free Report) is set to report second-quarter earnings results next Tuesday before the bell. The stock has fallen 3% this year on increased competition and Chinese economic growth concerns. Formerly known as Pinduoduo, PDD is a Zacks Rank #3 (Hold) stock. Given weakness in Chinese stocks as of late, is PDD a buy?
PDD is expected to post a profit of $1.12/share, which would reflect negative growth of -0.88% versus the same quarter last year. Revenues are projected to have increased 30.8% to $6.14 billion during the second quarter.
The company has exceeded earnings estimates in each of the last four quarters, and boasts an average earnings beat of 78.68% over that timeframe. Analysts covering PDD have slightly decreased Q2 estimates over the past week.
PDD stock has widely underperformed throughout the course of the year. Caution is warranted given foreign growth concerns and weakness in related equities.