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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) closed the most recent trading day at $123.74, moving +0.44% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.65%. On the other hand, the Dow registered a loss of 0.49%, and the technology-centric Nasdaq decreased by 0.96%.

Shares of the company witnessed a loss of 8.96% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 4.2% and the S&P 500's gain of 3.27%.

Investors will be eagerly watching for the performance of PDD Holdings Inc. in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on March 20, 2024. It is anticipated that the company will report an EPS of $1.62, marking a 33.88% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $11.99 billion, indicating a 107.61% increase compared to the same quarter of the previous year.

Investors should also take note of any recent adjustments to analyst estimates for PDD Holdings Inc. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, PDD Holdings Inc. possesses a Zacks Rank of #2 (Buy).

Digging into valuation, PDD Holdings Inc. currently has a Forward P/E ratio of 17.17. For comparison, its industry has an average Forward P/E of 20.1, which means PDD Holdings Inc. is trading at a discount to the group.

Also, we should mention that PDD has a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. 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. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 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.

To follow PDD in the coming trading sessions, be sure to utilize Zacks.com.


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