On Wednesday, PDD Holdings ADR got an upgrade for its IBD SmartSelect Composite Rating from 90 to 96. Yesterday, the company gapped up on a stellar earnings report and was discussed on recent editions of IBD LIVE.
The upgrade means the stock is now outpacing 96% of all other stocks in terms of key performance metrics and technical strength.
PDD Holdings opened today's trading within a buy range from a 92.79 entry from a cup with handle. But since it never looked back, it is just out of the buy zone at 6% from the pivot. Watch for a pullback to offer another opportunity to buy.
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One weak spot is the company's 76 EPS Rating, which tracks quarterly and annual earnings-per-share growth. It would be perfect for that to improve to 80 or better to show it's in the top 20% of all stocks. But I guess you can't have everything.
Its Accumulation/Distribution Rating of A- shows heavy buying by institutional investors over the last 13 weeks.
PDD Earnings
The company reported a 27% earnings-per-share gain for Q2. Sales growth increased 54%, up from 46% in the prior quarter. The company has now posted accelerating growth in each of the last two quarters.
PDD Holdings ADR earns the No. 3 rank among its peers in the Retail-Internet industry group. Liquidity Services is the No. 1-ranked stock within the group.
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