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PDD Holdings Inc. (PDD) Surpasses Market Returns: Some Facts Worth Knowing

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The latest trading session saw PDD Holdings Inc. (PDD - Free Report) ending at $106.96, denoting a +1.25% adjustment from its last day's close. The stock outpaced the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.39%.

Prior to today's trading, shares of the company had gained 10.8% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.62% and the S&P 500's loss of 3.39% in that time.

The upcoming earnings release of PDD Holdings Inc. will be of great interest to investors. On that day, PDD Holdings Inc. is projected to report earnings of $1.28 per share, which would represent year-over-year growth of 5.79%. In the meantime, our current consensus estimate forecasts the revenue to be $7.22 billion, indicating a 44.64% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates project earnings of $4.93 per share and a revenue of $27.62 billion, demonstrating changes of +23.87% and +43.77%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for PDD Holdings Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. PDD Holdings Inc. is holding a Zacks Rank of #3 (Hold) right now.

In the context of valuation, PDD Holdings Inc. is at present trading with a Forward P/E ratio of 21.43. This expresses a premium compared to the average Forward P/E of 19.77 of its industry.

Also, we should mention that PDD has a PEG ratio of 0.83. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry currently had an average PEG ratio of 0.75 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 74, this industry ranks in the top 30% of all industries, numbering over 250.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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