Stocks of PDD Holdings Inc. (PDD) are poised to climb above their peers

PDD Holdings Inc. (NASDAQ: PDD) stock fell -1.76% on Tuesday to $61.93 against a previous-day closing price of $63.04. With 5.33 million shares changed hands, the volume of the stock remained lighter than its average volume of 9.29 million shares. During the session, the Internet Retail company that operates in wider Consumer Cyclical sector, reached to the highest price of $63.24 whereas the lowest price it dropped to was $60.89. The 52-week range on PDD shows that it touched its highest point at $106.38 and its lowest point at $36.29 during that stretch. It currently has a 1-year price target of $105.83. Beta for the stock currently stands at 0.74.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PDD was down-trending over the past week, with a drop of -6.18%, but this was down by -7.22% over a month. Three-month performance dropped to -25.76% while six-month performance fell -11.72%. The stock gained 51.42% in the past year, while it has lost -24.06% so far this year. A look at the trailing 12-month EPS for PDD yields 3.11 with Next year EPS estimates of 5.13. For the next quarter, that number is 0.54. This implies an EPS growth rate of 302.60% for this year and 29.20% for next year. EPS is expected to grow by 40.82% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 119.20%.

Float and Shares Shorts:

At present, 1.27 billion PDD shares are outstanding with a float of 911.82 million shares on hand for trading. On Apr 27, 2023, short shares totaled 29.08 million, which was 2.19% higher than short shares on Mar 30, 2023. In addition to Mr. Lei Chen as the firm’s Chairman & Co-CEO, Mr. Jiazhen Zhao serves as its Co-CEO & Exec. Director.

Institutional Ownership:

Through their ownership of 28.85% of PDD’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 14.44% of PDD, in contrast to 11.69% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in PDD with 2.23% of the stake, Baillie Gifford & Co. holds 28,191,244 shares worth 28,191,244. A second-largest stockholder of PDD, BlackRock Fund Advisors, holds 15,076,616 shares, controlling over 1.19% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in PDD, holding 11,062,674 shares or 0.88% stake. With a 0.67% stake in PDD, the Government Pension Fund – Global is the largest stakeholder. A total of 8,526,838 shares are owned by the mutual fund manager. The Invesco QQQ Trust, which owns about 0.62% of PDD stock, is the second-largest Mutual Fund holder. It holds 7,890,939 shares valued at 537.77 million. Vanguard Emerging Markets Stock I holds 0.48% of the stake in PDD, owning 6,039,643 shares worth 411.6 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Dec 30, 2022, PDD reported revenue of $31.44B and operating income of $8.70B. The EBITDA in the recently reported quarter was $10.72B and diluted EPS was $6.24.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PDD since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With PDD analysts setting a high price target of $971.84 and a low target of $516.93, the average target price over the next 12 months is $725.97. Based on these targets, PDD could surge 1469.26% to reach the target high and rise by 734.7% to reach the target low. Reaching the average price target will result in a growth of 1072.24% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

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