PDD(US:PDD) ZACKS·2025-10-20 22:46Core Viewpoint - PDD Holdings Inc. is experiencing a mixed performance in the market, with a recent stock price increase but a decline over the past month, while upcoming earnings are anticipated to show a decrease in EPS but an increase in revenue [1][2][3]. Group 1: Stock Performance - PDD Holdings Inc. closed at $131.56, reflecting a +2.4% change from the previous day, outperforming the S&P 500's gain of 1.07% [1]. - The stock has decreased by 0.76% over the past month, underperforming the Retail-Wholesale sector's loss of 5.23% and the S&P 500's gain of 1.08% [1]. Group 2: Earnings Forecast - The upcoming earnings report is expected to show an EPS of $2.21, which is a 16.6% decrease from the same quarter last year [2]. - Revenue is forecasted to reach $15.21 billion, indicating a 7.44% increase compared to the previous year [2]. - For the full year, earnings are projected at $9.62 per share, representing a -15.02% change, while revenue is expected to be $59.82 billion, reflecting a +9.38% change from the prior year [3]. Group 3: Analyst Revisions and Rankings - Recent revisions to analyst forecasts for PDD Holdings Inc. are important as they indicate changing business trends, with positive revisions suggesting an optimistic outlook [4]. - The Zacks Rank system, which assesses estimate changes, currently ranks PDD Holdings Inc. as 1 (Strong Buy), indicating strong potential for share price momentum [6]. Group 4: Valuation Metrics - PDD Holdings Inc. has a Forward P/E ratio of 13.36, which is lower than the industry average of 21.03, suggesting it is undervalued [7]. - The company has a PEG ratio of 1.38, aligning with the industry average, indicating a balanced consideration of earnings growth [8]. - The Internet-Commerce industry, to which PDD belongs, holds a Zacks Industry Rank of 57, placing it in the top 24% of over 250 industries [8][9].