Back to top

Image: Bigstock

Pinduoduo Inc. Sponsored ADR (PDD) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Pinduoduo Inc. Sponsored ADR (PDD - Free Report) closed the most recent trading day at $55.37, moving -1.02% from the previous trading session. This change lagged the S&P 500's daily gain of 2.6%.

Coming into today, shares of the company had lost 19.94% in the past month. In that same time, the Retail-Wholesale sector lost 12.99%, while the S&P 500 lost 12.9%.

Investors will be hoping for strength from Pinduoduo Inc. Sponsored ADR as it approaches its next earnings release. The company is expected to report EPS of $0.74, up 117.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4.49 billion, up 34.54% from the year-ago period.

PDD's full-year Zacks Consensus Estimates are calling for earnings of $3.26 per share and revenue of $18.28 billion. These results would represent year-over-year changes of +117.33% and +25.53%, respectively.

Investors should also note any recent changes to analyst estimates for Pinduoduo Inc. Sponsored ADR. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Pinduoduo Inc. Sponsored ADR is holding a Zacks Rank of #1 (Strong Buy) right now.

Looking at its valuation, Pinduoduo Inc. Sponsored ADR is holding a Forward P/E ratio of 17.14. Its industry sports an average Forward P/E of 21.81, so we one might conclude that Pinduoduo Inc. Sponsored ADR is trading at a discount comparatively.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


PDD Holdings Inc. Sponsored ADR (PDD) - free report >>

Published in