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PDD Holdings Inc. Sponsored ADR (PDD) Stock Slides as Market Rises: Facts to Know Before You Trade

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The latest trading session saw PDD Holdings Inc. Sponsored ADR (PDD - Free Report) ending at $135.84, denoting a -1.56% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. Elsewhere, the Dow gained 1.85%, while the tech-heavy Nasdaq added 0.2%.

Coming into today, shares of the company had lost 6.95% in the past month. In that same time, the Conglomerates sector lost 4.02%, while the S&P 500 gained 3.82%.

The investment community will be paying close attention to the earnings performance of PDD Holdings Inc. Sponsored ADR in its upcoming release. The company is expected to report EPS of $2.89, up 100.69% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $13.72 billion, indicating a 90.3% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.32 per share and revenue of $56.27 billion. These totals would mark changes of +87.8% and +62.43%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for PDD Holdings Inc. Sponsored ADR. 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.97% higher. PDD Holdings Inc. Sponsored ADR is currently a Zacks Rank #1 (Strong Buy).

Looking at its valuation, PDD Holdings Inc. Sponsored ADR is holding a Forward P/E ratio of 11.2. This represents a discount compared to its industry's average Forward P/E of 18.8.

Meanwhile, PDD's PEG ratio is currently 0.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Diversified Operations industry currently had an average PEG ratio of 1.78 as of yesterday's close.

The Diversified Operations industry is part of the Conglomerates sector. Currently, this industry holds a Zacks Industry Rank of 34, positioning it in the top 14% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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