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PDD Holdings Inc. (PDD) Gains As Market Dips: What You Should Know

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PDD Holdings Inc. (PDD - Free Report) closed the most recent trading day at $65.15, moving +0.88% from the previous trading session. This change outpaced the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 10.47%.

Heading into today, shares of the company had lost 11.34% over the past month, lagging the Retail-Wholesale sector's gain of 3.29% and the S&P 500's gain of 2.61% in that time.

Wall Street will be looking for positivity from PDD Holdings Inc. as it approaches its next earnings report date. The company is expected to report EPS of $0.67, up 42.55% from the prior-year quarter. 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.

It is also important to note the recent changes to analyst estimates for PDD Holdings Inc.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.

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.

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 remained stagnant. PDD Holdings Inc. is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that PDD Holdings Inc. has a Forward P/E ratio of 15.28 right now. Its industry sports an average Forward P/E of 21.5, 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 80, which puts it in the top 32% 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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