In the latest trading session, PDD Holdings Inc. Sponsored ADR (PDD – Free Report) closed at $114.27, marking a +1.38% move from the previous day. The stock’s change was more than the S&P 500’s daily loss of 0.95%. At the same time, the Dow lost 0.99%, and the tech-heavy Nasdaq lost 1.36%.
Heading into today, shares of the company had gained 12.36% over the past month, outpacing the Retail-Wholesale sector’s gain of 7.69% and the S&P 500’s gain of 1.86% in that time.
Analysts and investors alike will be keeping a close eye on the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. The company is expected to report EPS of $2.56, up 6.67% from the prior-year quarter. 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.
Investors should also note any recent changes to analyst estimates for PDD Holdings Inc. Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, PDD Holdings Inc. Sponsored ADR holds a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that PDD Holdings Inc. Sponsored ADR has a Forward P/E ratio of 9.23 right now. This denotes a discount relative to the industry’s average Forward P/E of 22.92.
We can also see that PDD currently has a PEG ratio of 0.27. 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 1.09.
The Internet – Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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