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Pinduoduo Inc. Sponsored ADR (PDD) Gains But Lags Market: What You Should Know

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Pinduoduo Inc. Sponsored ADR (PDD) closed at $49.65 in the latest trading session, marking a +1.37% move from the prior day. The stock lagged the S&P 500's daily gain of 1.56%. At the same time, the Dow added 1.29%, and the tech-heavy Nasdaq gained 0.01%.

Coming into today, shares of the company had lost 26.48% in the past month. In that same time, the Retail-Wholesale sector gained 8.91%, while the S&P 500 gained 7.11%.

Pinduoduo Inc. Sponsored ADR will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.38, down 13.64% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $3.54 billion, down 0.82% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.93 per share and revenue of $16.67 billion. These totals would mark changes of +28.67% and +14.5%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Pinduoduo Inc. Sponsored ADR. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Pinduoduo Inc. Sponsored ADR is currently a Zacks Rank #3 (Hold).

Investors should also note Pinduoduo Inc. Sponsored ADR's current valuation metrics, including its Forward P/E ratio of 25.44. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 25.44.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow PDD in the coming trading sessions, be sure to utilize Zacks.com.


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