PDD Holdings Inc. Sponsored ADR (PDD) Surpasses Market Returns Amid Earnings Expectations and Industry Rankings

PDD Holdings Inc. Sponsored ADR (PDD) rose 2.44% to $111.66, outperforming the S&P 500's 0.14% gain. The stock has gained 7.7% over the past month, exceeding the Retail-Wholesale sector's 4.28% gain and the S&P 500's 5.35% gain. PDD's upcoming earnings release is expected to show EPS of $2.04, down 36.25% YoY, and revenue of $14.28 billion, up 6.91% YoY. The Zacks Consensus Estimates anticipate annual EPS of $8.79 and revenue of $59.22 billion, with a Zacks Rank of #5 (Strong Sell).

PDD Holdings Inc. Sponsored ADR (PDD) rose 2.44% to $111.66 on July 2, 2025, outperforming the S&P 500's 0.14% gain. The stock has gained 7.7% over the past month, exceeding the Retail-Wholesale sector's 4.28% gain and the S&P 500's 5.35% gain [1].

The investment community will be closely monitoring PDD's upcoming earnings release. The company is expected to report earnings per share (EPS) of $2.04, reflecting a 36.25% year-over-year (YoY) decrease. Revenue is projected to be $14.28 billion, up 6.91% YoY [2]. For the annual period, the Zacks Consensus Estimates anticipate EPS of $8.79 and revenue of $59.22 billion, with a Zacks Rank of #5 (Strong Sell) [3].

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has a remarkable history of outperforming, with #1 stocks returning an average annual gain of +25% since 1988. PDD's current Zacks Rank of #5 suggests a cautious outlook, reflecting the significant decline in EPS and the company's valuation metrics.

Valuation-wise, PDD is currently trading at a Forward P/E ratio of 12.41, which is a discount compared to its industry's Forward P/E of 22.25. Additionally, PDD has a PEG ratio of 1.35, indicating a favorable valuation compared to the industry average of 1.66 [1].

Investors should pay attention to any recent changes in analyst estimates for PDD, as these revisions can provide insights into near-term business trends and stock performance. Positive revisions in estimates can indicate analysts' confidence in the company's business performance and profit potential [2].

References:
[1] https://finviz.com/news/109907/pdd-holdings-inc-sponsored-adr-pdd-surpasses-market-returns-some-facts-worth-knowing
[2] https://finance.yahoo.com/news/pdd-holdings-inc-sponsored-adr-214504698.html
[3] https://ca.finance.yahoo.com/news/pdd-holdings-inc-sponsored-adr-214504698.html