In the latest trading session, PDD Holdings Inc. Sponsored ADR (PDD) closed at $117.77, marking a -0.18% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.49%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq gained 1.22%.
Coming into today, shares of the company had gained 0.43% in the past month. In that same time, the Retail-Wholesale sector lost 10.63%, while the S&P 500 lost 8.15%.
Market participants will be closely following the financial results of PDD Holdings Inc. Sponsored ADR in its upcoming release. It is anticipated that the company will report an EPS of $2.56, marking a 6.67% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $15.68 billion, indicating a 25.24% growth compared to the corresponding quarter of the prior year.
It is also important to note the recent changes to analyst estimates 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. PDD Holdings Inc. Sponsored ADR is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, PDD Holdings Inc. Sponsored ADR is at present trading with a Forward P/E ratio of 9.66. For comparison, its industry has an average Forward P/E of 20.74, which means PDD Holdings Inc. Sponsored ADR is trading at a discount to the group.
We can additionally observe that PDD currently boasts a PEG ratio of 0.28. 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. PDD's industry had an average PEG ratio of 1.09 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 21% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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