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

Pinduoduo Inc. Sponsored ADR (PDD) closed at $62.65 in the latest trading session, marking a +0.11% move from the prior day. This change lagged the S&P 500's 2.59% gain on the day. Elsewhere, the Dow gained 2.66%, while the tech-heavy Nasdaq added 0.12%.

Coming into today, shares of the company had lost 13.31% in the past month. In that same time, the Retail-Wholesale sector lost 8.35%, while the S&P 500 lost 9.22%.

Pinduoduo Inc. Sponsored ADR will be looking to display strength as it nears its next earnings release. In that report, analysts expect Pinduoduo Inc. Sponsored ADR to post earnings of $0.38 per share. This would mark year-over-year growth of 11.76%. Our most recent consensus estimate is calling for quarterly revenue of $4.49 billion, up 34.54% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.26 per share and revenue of $18.28 billion. These totals would mark changes of +117.33% and +25.53%, respectively, from last year.

Any recent changes to analyst estimates for Pinduoduo Inc. Sponsored ADR should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Pinduoduo Inc. Sponsored ADR is currently a Zacks Rank #1 (Strong Buy).

In terms of valuation, Pinduoduo Inc. Sponsored ADR is currently trading at a Forward P/E ratio of 19.18. Its industry sports an average Forward P/E of 22.45, so we one might conclude that Pinduoduo Inc. Sponsored ADR is trading at a discount comparatively.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 141, putting it in the bottom 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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