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PDD Holdings Inc. (PDD) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, PDD Holdings Inc. (PDD - Free Report) closed at $72.32, marking a -1.2% move from the previous day. This change lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow added 0.24%, and the tech-heavy Nasdaq lost 1.88%.

Prior to today's trading, shares of the company had lost 21.85% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.73% and the S&P 500's gain of 1.48% in that time.

PDD Holdings Inc. will be looking to display strength as it nears its next earnings release. In that report, analysts expect PDD Holdings Inc. to post earnings of $0.67 per share. This would mark year-over-year growth of 42.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.58 billion, up 22.1% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.23 per share and revenue of $23.71 billion. These totals would mark changes of +6.28% and +23.41%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for PDD Holdings Inc.Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 9.76% lower. PDD Holdings Inc. is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, PDD Holdings Inc. is currently trading at a Forward P/E ratio of 17.32. Its industry sports an average Forward P/E of 20.77, so we one might conclude that PDD Holdings Inc. is trading at a discount comparatively.

The Internet - Commerce industry is part of the Retail-Wholesale 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 includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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