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PDD Holdings Inc. Sponsored ADR (PDD) Stock Slides as Market Rises: Facts to Know Before You Trade

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PDD Holdings Inc. Sponsored ADR (PDD - Free Report) closed the latest trading day at $120.55, indicating a -1.31% change from the previous session's end. This change lagged the S&P 500's daily gain of 2.53%. At the same time, the Dow added 3.57%, and the tech-heavy Nasdaq gained 2.95%.

Coming into today, shares of the company had lost 15.68% in the past month. In that same time, the Conglomerates sector lost 9.06%, while the S&P 500 gained 0.66%.

Analysts and investors alike will be keeping a close eye on the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. On that day, PDD Holdings Inc. Sponsored ADR is projected to report earnings of $2.82 per share, which would represent year-over-year growth of 81.94%. Meanwhile, the latest consensus estimate predicts the revenue to be $14.47 billion, indicating a 53.36% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.01 per share and a revenue of $56.47 billion, signifying shifts of +83.08% and +62.99%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for PDD Holdings Inc. Sponsored ADR. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 witnessed a 1.31% increase. Currently, PDD Holdings Inc. Sponsored ADR is carrying a Zacks Rank of #2 (Buy).

From a valuation perspective, PDD Holdings Inc. Sponsored ADR is currently exchanging hands at a Forward P/E ratio of 10.17. This valuation marks a discount compared to its industry's average Forward P/E of 17.4.

It is also worth noting that PDD currently has a PEG ratio of 0.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Diversified Operations industry held an average PEG ratio of 1.85.

The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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