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Here's Why PDD Holdings Inc. (PDD) Gained But Lagged the Market Today
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In the latest trading session, PDD Holdings Inc. (PDD - Free Report) closed at $131.62, marking a +1.43% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 2.11%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 2.96%.
The company's shares have seen a decrease of 10.2% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.94% and the S&P 500's gain of 3.08%.
The investment community will be closely monitoring the performance of PDD Holdings Inc. in its forthcoming earnings report. The company is forecasted to report an EPS of $1.62, showcasing a 33.88% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $11.99 billion, showing a 107.61% escalation compared to the year-ago quarter.
Investors might also notice recent changes to analyst estimates for PDD Holdings Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. PDD Holdings Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that PDD Holdings Inc. has a Forward P/E ratio of 18.08 right now. This expresses a discount compared to the average Forward P/E of 19.51 of its industry.
We can also see that PDD currently has a PEG ratio of 0.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.58.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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Here's Why PDD Holdings Inc. (PDD) Gained But Lagged the Market Today
In the latest trading session, PDD Holdings Inc. (PDD - Free Report) closed at $131.62, marking a +1.43% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 2.11%. Elsewhere, the Dow gained 1.18%, while the tech-heavy Nasdaq added 2.96%.
The company's shares have seen a decrease of 10.2% over the last month, not keeping up with the Retail-Wholesale sector's gain of 4.94% and the S&P 500's gain of 3.08%.
The investment community will be closely monitoring the performance of PDD Holdings Inc. in its forthcoming earnings report. The company is forecasted to report an EPS of $1.62, showcasing a 33.88% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $11.99 billion, showing a 107.61% escalation compared to the year-ago quarter.
Investors might also notice recent changes to analyst estimates for PDD Holdings Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. PDD Holdings Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that PDD Holdings Inc. has a Forward P/E ratio of 18.08 right now. This expresses a discount compared to the average Forward P/E of 19.51 of its industry.
We can also see that PDD currently has a PEG ratio of 0.39. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.58.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.