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PDD Holdings Inc. Sponsored ADR (PDD) Falls More Steeply Than Broader Market: What Investors Need to Know

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In the latest close session, PDD Holdings Inc. Sponsored ADR (PDD - Free Report) was down 1.07% at $113.04. The stock's change was less than the S&P 500's daily loss of 0.25%. Meanwhile, the Dow experienced a drop of 0.45%, and the technology-dominated Nasdaq saw a decrease of 0.3%.

The company's shares have seen an increase of 8.91% over the last month, surpassing the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 2.71%.

The investment community will be paying close attention to the earnings performance of PDD Holdings Inc. Sponsored ADR in its upcoming release. The company's upcoming EPS is projected at $1.91, signifying a 40.31% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $14.28 billion, up 6.91% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.7 per share and revenue of $59.22 billion, which would represent changes of -23.14% and +8.28%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for PDD Holdings Inc Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 past month, there's been a 1.55% fall in the Zacks Consensus EPS estimate. PDD Holdings Inc. Sponsored ADR currently has a Zacks Rank of #5 (Strong Sell).

In terms of valuation, PDD Holdings Inc. Sponsored ADR is presently being traded at a Forward P/E ratio of 13.14. This indicates a discount in contrast to its industry's Forward P/E of 18.58.

We can additionally observe that PDD currently boasts a PEG ratio of 1.43. 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 1.5.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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