Here's Why PDD Holdings Inc. Sponsored ADR (PDD) Fell More Than Broader Market

Company Performance - PDD Holdings Inc. Sponsored ADR closed at $131.25, reflecting a -1.88% change from the previous day's closing price, underperforming the S&P 500, which lost 0.28% [1] - Over the last month, PDD's shares increased by 7.29%, outperforming the Retail-Wholesale sector's decline of 3.47% and the S&P 500's gain of 4.03% [1] Upcoming Financial Results - The upcoming financial results are expected to show an EPS of $2.21, indicating a 16.6% decrease compared to the same quarter last year [2] - Anticipated quarterly revenue is projected at $15.21 billion, representing a 7.44% increase from the previous year [2] Full-Year Estimates - Full-year Zacks Consensus Estimates predict earnings of $9.62 per share and revenue of $59.82 billion, reflecting year-over-year changes of -15.02% and +9.38%, respectively [3] - Changes in analyst estimates are crucial for investors as they indicate shifts in business trends and profitability outlook [3] Zacks Rank and Valuation - PDD Holdings Inc. currently holds a Zacks Rank of 1 (Strong Buy), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [5] - The company is trading at a Forward P/E ratio of 13.91, which is lower than the industry average Forward P/E of 21.82, and has a PEG ratio of 1.44, close to the industry average of 1.46 [6] Industry Context - The Internet - Commerce industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [7] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [7]