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PDD Holdings Inc. (PDD) Stock Moves -0.78%: What You Should Know

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PDD Holdings Inc. (PDD - Free Report) closed the most recent trading day at $107.49, moving -0.78% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 1.43%. Elsewhere, the Dow saw a downswing of 0.32%, while the tech-heavy Nasdaq depreciated by 2.43%.

The the stock of company has risen by 15.34% in the past month, leading the Retail-Wholesale sector's loss of 2.31% and the S&P 500's loss of 1.55%.

Analysts and investors alike will be keeping a close eye on the performance of PDD Holdings Inc. in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.28, showcasing a 5.79% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $7.22 billion, reflecting a 44.64% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.93 per share and a revenue of $27.62 billion, representing changes of +23.87% and +43.77%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for PDD Holdings Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. PDD Holdings Inc. is currently sporting a Zacks Rank of #2 (Buy).

In the context of valuation, PDD Holdings Inc. is at present trading with a Forward P/E ratio of 21.98. This indicates a premium in contrast to its industry's Forward P/E of 19.58.

Meanwhile, PDD's PEG ratio is currently 0.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.73.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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