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PDD Holdings Inc. (PDD) Stock Sinks As Market Gains: What You Should Know

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PDD Holdings Inc. (PDD - Free Report) closed the latest trading day at $127.55, indicating a -0.37% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.02% for the day. On the other hand, the Dow registered a loss of 0.11%, and the technology-centric Nasdaq increased by 0.1%.

Shares of the company have appreciated by 6.59% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 2.56% and the S&P 500's loss of 3.01%.

The investment community will be paying close attention to the earnings performance of PDD Holdings Inc. in its upcoming release. It is anticipated that the company will report an EPS of $1.60, marking a 58.42% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $10.42 billion, up 90.07% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $8.47 per share and a revenue of $51.89 billion, demonstrating changes of +29.12% and +49.79%, respectively, from the preceding year.

Investors might also notice recent changes to analyst estimates for PDD Holdings Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Currently, PDD Holdings Inc. is carrying a Zacks Rank of #1 (Strong Buy).

With respect to valuation, PDD Holdings Inc. is currently being traded at a Forward P/E ratio of 15.12. This valuation marks a discount compared to its industry's average Forward P/E of 21.85.

Also, we should mention that PDD has a PEG ratio of 0.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Commerce industry stood at 0.68 at the close of the market yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 41, placing it within the top 17% of over 250 industries.

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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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