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JD.com, Inc. (JD) Gains But Lags Market: What You Should Know

Zacks Equity Research

JD.com, Inc. (JD) closed the most recent trading day at $26.48, moving +1.18% from the previous trading session. This change lagged the S&P 500's 1.3% gain on the day. Elsewhere, the Dow gained 1.21%, while the tech-heavy Nasdaq added 1.39%.

Heading into today, shares of the company had lost 14.39% over the past month, lagging the Retail-Wholesale sector's loss of 6.28% and the S&P 500's loss of 4.84% in that time.

Investors will be hoping for strength from JD as it approaches its next earnings release, which is expected to be August 13, 2019. The company is expected to report EPS of $0.09, up 80% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $21.72 billion, up 17.52% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.68 per share and revenue of $81.27 billion, which would represent changes of +100% and +17.26%, respectively, from the prior year.

Any recent changes to analyst estimates for JD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. JD is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, JD is currently trading at a Forward P/E ratio of 38.67. This represents a premium compared to its industry's average Forward P/E of 23.99.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 59, putting it in the top 24% 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.

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


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