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

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In the latest close session, PDD Holdings Inc. Sponsored ADR (PDD - Free Report) was down 1.43% at $103.98. The stock fell short of the S&P 500, which registered a gain of 0.48% for the day. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.94%.

Coming into today, shares of the company had gained 7.28% in the past month. In that same time, the Retail-Wholesale sector gained 3.33%, while the S&P 500 gained 5.13%.

The investment community will be closely monitoring the performance of PDD Holdings Inc. Sponsored ADR in its forthcoming earnings report. The company's upcoming EPS is projected at $2.04, signifying a 36.25% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $14.28 billion, showing a 6.91% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.79 per share and revenue of $59.22 billion. These totals would mark changes of -22.35% and +8.28%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for PDD Holdings Inc Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PDD Holdings Inc. Sponsored ADR presently features a Zacks Rank of #5 (Strong Sell).

Investors should also note PDD Holdings Inc. Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 12.01. This represents a discount compared to its industry average Forward P/E of 25.32.

It is also worth noting that PDD currently has a PEG ratio of 1.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.4.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 63, positioning it in the top 26% of all 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.

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


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