PDD Holdings Inc. Sponsored ADR (PDD) is Attracting Investor Attention: Here is What You Should Know

Core Viewpoint - PDD Holdings Inc. Sponsored ADR has experienced a decline of -7.8% over the past month, contrasting with the Zacks S&P 500 composite's increase of +4.3%, raising questions about its near-term stock performance [1] Earnings Estimate Revisions - The current quarter's earnings estimate for PDD is $2.89 per share, reflecting a significant increase of +100.7$12.32, indicating a year-over-year change of +87.8%, with a +2% change over the last 30 days [3] - For the next fiscal year, the earnings estimate is $14.95, showing a change of +21.4$13.72 billion, indicating a year-over-year change of +90.3% [5] - The sales estimates for the current and next fiscal years are $56.27 billion and$71.59 billion, reflecting changes of +62.4% and +27.2%, respectively [5] Last Reported Results and Surprise History - In the last reported quarter, PDD Holdings Inc. achieved revenues of $12.02 billion, a year-over-year increase of +119.4$2.83 compared to $1.01 a year ago [6] - The reported revenues exceeded the Zacks Consensus Estimate of$10.62 billion by +13.2%, and the EPS surprise was +76.87% [6] - The company has consistently beaten consensus EPS and revenue estimates in the last four quarters [6] Valuation - PDD Holdings Inc. is graded C in the Zacks Value Style Score, indicating it is trading at par with its peers [9] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [7] Bottom Line - The Zacks Rank 1 suggests that PDD Holdings Inc. may outperform the broader market in the near term, warranting attention to its market buzz [10]