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PDD Holdings Inc. (PDD) Rises As Market Takes a Dip: Key Facts

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PDD Holdings Inc. (PDD - Free Report) ended the recent trading session at $104.19, demonstrating a +1.37% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.17%. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq added 0.27%.

The company's shares have seen an increase of 7.14% over the last month, surpassing the Retail-Wholesale sector's loss of 5.71% and the S&P 500's loss of 3.95%.

Analysts and investors alike will be keeping a close eye on the performance of PDD Holdings Inc. in its upcoming earnings disclosure. The company is expected to report EPS of $1.28, up 5.79% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $7.22 billion, reflecting a 44.64% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.93 per share and a revenue of $27.62 billion, representing changes of +23.87% and +43.77%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for PDD Holdings Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, PDD Holdings Inc. boasts a Zacks Rank of #2 (Buy).

With respect to valuation, PDD Holdings Inc. is currently being traded at a Forward P/E ratio of 20.85. For comparison, its industry has an average Forward P/E of 19.17, which means PDD Holdings Inc. is trading at a premium to the group.

We can additionally observe that PDD currently boasts a PEG ratio of 0.81. 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. The Internet - Commerce industry currently had an average PEG ratio of 0.73 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 95, which puts it in the top 38% of all 250+ industries.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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