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PDD Holdings Inc. (PDD) Suffers a Larger Drop Than the General Market: Key Insights

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PDD Holdings Inc. (PDD - Free Report) closed the most recent trading day at $117.34, moving -1.21% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.18%, and the tech-heavy Nasdaq lost 0.59%.

The the stock of company has risen by 14% in the past month, leading the Retail-Wholesale sector's gain of 9.38% and the S&P 500's gain of 7.87%.

Investors will be eagerly watching for the performance of PDD Holdings Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.23, indicating a 1.65% growth compared to the equivalent quarter last year. 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.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.82 per share and revenue of $27.99 billion, indicating changes of +21.11% and +45.67%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for PDD Holdings Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.04% downward. As of now, PDD Holdings Inc. holds a Zacks Rank of #4 (Sell).

In terms of valuation, PDD Holdings Inc. is currently trading at a Forward P/E ratio of 24.64. This signifies a premium in comparison to the average Forward P/E of 19.37 for its industry.

We can also see that PDD currently has a PEG ratio of 0.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 0.77 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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