Yahoo Finance PDD Holdings Inc. Sponsored ADR (PDD) Stock Sinks As Market Gains: Here's Why
PDD Holdings Inc. Sponsored ADR (PDD) ended the recent trading session at $127.43, demonstrating a -0.61% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.47% for the day. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 0.28%.
Shares of the company have appreciated by 30.32% over the course of the past month, outperforming the Conglomerates sector's gain of 6.52% and the S&P 500's gain of 3.48%.
The investment community will be paying close attention to the earnings performance of PDD Holdings Inc. Sponsored ADR in its upcoming release. The company is predicted to post an EPS of $2.74, indicating a 76.77% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $14.17 billion, indicating a 50.15% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $11.95 per share and a revenue of $55.97 billion, signifying shifts of +82.16% and +61.55%, respectively, from the last year.
Investors might also notice 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. PDD Holdings Inc. Sponsored ADR currently has a Zacks Rank of #3 (Hold).
With respect to valuation, PDD Holdings Inc. Sponsored ADR is currently being traded at a Forward P/E ratio of 10.73. Its industry sports an average Forward P/E of 18.74, so one might conclude that PDD Holdings Inc. Sponsored ADR is trading at a discount comparatively.
It's also important to note that PDD currently trades at a PEG ratio of 0.29. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Diversified Operations industry currently had an average PEG ratio of 1.87 as of yesterday's close.
The Diversified Operations industry is part of the Conglomerates sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% 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.
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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