Is Trending Stock PDD Holdings Inc. Sponsored ADR (PDD) a Buy Now?

Core Viewpoint - PDD Holdings Inc. Sponsored ADR has experienced a significant decline in stock performance, with a return of -15.1% over the past month, contrasting with the Zacks S&P 500 composite's increase of +3.6% [2] Earnings Estimates - For the current quarter, PDD is expected to report earnings of $2.56 per share, reflecting a year-over-year increase of +6.7$11.39, indicating a substantial increase of +73.6% from the previous year, but this estimate has also been revised down by -8.5% [5] - For the next fiscal year, the earnings estimate is $12.21, suggesting a growth of +7.2$15.68 billion, which represents a year-over-year growth of +25.2% [10] - For the current fiscal year, the revenue estimate is $54.89 billion, indicating a growth of +58.4$65.75 billion reflects a growth of +19.8% [10] Recent Performance and Surprises - In the last reported quarter, PDD Holdings Inc. achieved revenues of $14.16 billion, marking a year-over-year increase of +50.1$2.65 compared to $1.55 a year ago [11] - The company reported a revenue surprise of -2.16% against the Zacks Consensus Estimate and an EPS surprise of -6.03% [11] - Over the last four quarters, PDD has surpassed consensus EPS estimates three times and revenue estimates two times [12] Valuation - PDD Holdings Inc. is graded B in the Zacks Value Style Score, indicating that it is trading at a discount compared to its peers [16] - 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 overvalued, fairly valued, or undervalued [14][15] Overall Outlook - The Zacks Rank for PDD Holdings Inc. is 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [7][17]