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PDD Holdings Inc. (PDD) Increases Yet Falls Behind Market: What Investors Need to Know

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The most recent trading session ended with PDD Holdings Inc. (PDD - Free Report) standing at $111.04, reflecting a +1.66% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 1.91%. Elsewhere, the Dow saw an upswing of 1.43%, while the tech-heavy Nasdaq appreciated by 2.37%.

Shares of the company have appreciated by 3.71% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 4.91% and outperforming the S&P 500's gain of 2.02%.

The investment community will be paying close attention to the earnings performance of PDD Holdings Inc. in its upcoming release. 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.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.82 per share and revenue of $27.99 billion. These totals would mark changes of +21.11% and +45.67%, respectively, from last year.

Any recent changes to analyst estimates for PDD Holdings Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 4.04% lower within the past month. Currently, PDD Holdings Inc. is carrying a Zacks Rank of #4 (Sell).

In terms of valuation, PDD Holdings Inc. is currently trading at a Forward P/E ratio of 22.66. This denotes a premium relative to the industry's average Forward P/E of 21.82.

It's also important to note that PDD currently trades at a PEG ratio of 0.88. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. 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. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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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