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Pinduoduo Inc. Sponsored ADR (PDD) Dips More Than Broader Markets: What You Should Know

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Pinduoduo Inc. Sponsored ADR (PDD - Free Report) closed at $47.33 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's daily loss of 0.43%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, lost 0.4%.

Prior to today's trading, shares of the company had lost 12.85% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.29% and the S&P 500's gain of 6.28% in that time.

Investors will be hoping for strength from Pinduoduo Inc. Sponsored ADR as it approaches its next earnings release. In that report, analysts expect Pinduoduo Inc. Sponsored ADR to post earnings of $0.38 per share. This would mark a year-over-year decline of 13.64%. Meanwhile, our latest consensus estimate is calling for revenue of $3.54 billion, down 0.82% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.93 per share and revenue of $16.67 billion, which would represent changes of +28.67% and +14.5%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Pinduoduo Inc. Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Pinduoduo Inc. Sponsored ADR is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that Pinduoduo Inc. Sponsored ADR has a Forward P/E ratio of 24.76 right now. For comparison, its industry has an average Forward P/E of 28.97, which means Pinduoduo Inc. Sponsored ADR is trading at a discount to the group.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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