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PDD Holdings Inc. (PDD) Exceeds Market Returns: Some Facts to Consider

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PDD Holdings Inc. (PDD - Free Report) ended the recent trading session at $102.93, demonstrating a +1.49% swing from the preceding day's closing price. This change outpaced the S&P 500's 1.05% gain on the day. Elsewhere, the Dow gained 0.67%, while the tech-heavy Nasdaq added 1.64%.

Prior to today's trading, shares of the company had gained 3.6% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.34% and the S&P 500's loss of 2.21% in that time.

Investors will be eagerly watching for the performance of PDD Holdings Inc. in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.23, reflecting a 1.65% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $7.22 billion, indicating a 44.64% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.82 per share and revenue of $27.99 billion, which would represent changes of +21.11% and +45.67%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for PDD Holdings Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 4.04% lower. Right now, PDD Holdings Inc. possesses a Zacks Rank of #4 (Sell).

From a valuation perspective, PDD Holdings Inc. is currently exchanging hands at a Forward P/E ratio of 21.04. This valuation marks a premium compared to its industry's average Forward P/E of 17.53.

Also, we should mention that PDD has a PEG ratio of 0.82. 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. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 0.7.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% 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.

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


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