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

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Pinduoduo Inc. Sponsored ADR (PDD - Free Report) closed at $65.39 in the latest trading session, marking a +0.32% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.89%. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.26%.

Prior to today's trading, shares of the company had gained 23.17% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.27% and the S&P 500's gain of 11.42% in that time.

Pinduoduo Inc. Sponsored ADR will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.73, up 114.71% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.45 billion, up 33.33% from the prior-year quarter.

PDD's full-year Zacks Consensus Estimates are calling for earnings of $3.27 per share and revenue of $18.39 billion. These results would represent year-over-year changes of +118% and +26.25%, respectively.

It is also important to note the recent changes to analyst estimates for Pinduoduo Inc. Sponsored ADR. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 2.24% higher. Pinduoduo Inc. Sponsored ADR currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Pinduoduo Inc. Sponsored ADR is currently trading at a Forward P/E ratio of 19.95. Its industry sports an average Forward P/E of 25.32, 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 94, putting it in the top 38% 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.

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


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