PDD(PDD) ZACKS·2024-11-18 15:55Core Viewpoint - PDD Holdings Inc. has shown a recent downtrend in stock price, but the formation of a hammer chart pattern suggests a potential trend reversal, supported by rising optimism among analysts regarding future earnings [1]. Group 1: Technical Analysis - The stock has lost 5.4% over the past two weeks, but a hammer chart pattern formed in the last trading session indicates that bulls may be gaining support against bears [1]. - A hammer chart pattern signals a potential bottom in a downtrend, suggesting that selling pressure may be exhausting [2]. - The hammer pattern occurs when a stock opens lower, makes a new low, but then closes near or slightly above its opening price, indicating a possible loss of control by bears [2]. Group 2: Fundamental Analysis - There has been an upward trend in earnings estimate revisions for PDD, with a 1.3% increase in the consensus EPS estimate for the current year over the last 30 days, indicating analysts expect better earnings [3]. - PDD holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [3]. - The Zacks Rank serves as a timing indicator, suggesting that the company's prospects are beginning to improve, reinforcing the potential for a turnaround [3].