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PDD Holdings Inc. Sponsored ADR (PDD) Laps the Stock Market: Here's Why

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PDD Holdings Inc. Sponsored ADR (PDD - Free Report) closed at $136.34 in the latest trading session, marking a +1.87% move from the prior day. This move outpaced the S&P 500's daily gain of 0.37%. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.65%.

The company's stock has climbed by 0.27% in the past month, falling short of the Retail-Wholesale sector's gain of 1.74% and the S&P 500's gain of 0.95%.

The investment community will be closely monitoring the performance of PDD Holdings Inc. Sponsored ADR in its forthcoming earnings report. It is anticipated that the company will report an EPS of $2.21, marking a 16.6% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.21 billion, indicating a 7.44% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates project earnings of $9.62 per share and a revenue of $60.3 billion, demonstrating changes of -15.02% and +10.27%, respectively, from the preceding year.

Any recent changes to analyst estimates for PDD Holdings Inc. Sponsored ADR should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, PDD Holdings Inc. Sponsored ADR boasts a Zacks Rank of #3 (Hold).

Digging into valuation, PDD Holdings Inc. Sponsored ADR currently has a Forward P/E ratio of 13.92. This valuation marks a discount compared to its industry average Forward P/E of 21.97.

One should further note that PDD currently holds a PEG ratio of 1.44. 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 1.47.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 139, positioning it in the bottom 44% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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