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PDD Holdings Inc. Sponsored ADR (PDD) Laps the Stock Market: Here's Why

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The latest trading session saw PDD Holdings Inc. Sponsored ADR (PDD - Free Report) ending at $104.01, denoting a +0.9% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 0.22%.

The the stock of company has risen by 3.37% in the past month, leading the Conglomerates sector's gain of 2.86% and the S&P 500's gain of 2.69%.

Investors will be eagerly watching for the performance of PDD Holdings Inc. Sponsored ADR in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.56, indicating a 6.67% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.68 billion, up 25.24% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for PDD Holdings 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 remained stagnant. At present, PDD Holdings Inc. Sponsored ADR boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that PDD Holdings Inc. Sponsored ADR has a Forward P/E ratio of 8.44 right now. This valuation marks a discount compared to its industry's average Forward P/E of 14.99.

Investors should also note that PDD has a PEG ratio of 0.25 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Diversified Operations was holding an average PEG ratio of 1.84 at yesterday's closing price.

The Diversified Operations industry is part of the Conglomerates sector. At present, this industry carries a Zacks Industry Rank of 194, placing it within the bottom 23% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow PDD in the coming trading sessions, be sure to utilize Zacks.com.


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