In the latest trading session, JD.com, Inc. (JD) closed at $31.24, marking a +0.77% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq lost 0.3%.
Coming into today, shares of the company had lost 0.55% in the past month. In that same time, the Retail-Wholesale sector lost 1.56%, while the S&P 500 lost 0.25%.
Investors will be hoping for strength from JD as it approaches its next earnings release. In that report, analysts expect JD to post earnings of $0.18 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.40 billion, up 20.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.95 per share and revenue of $80.51 billion, which would represent changes of +179.41% and +16.16%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for JD. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. JD currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, JD is holding a Forward P/E ratio of 32.8. This valuation marks a premium compared to its industry's average Forward P/E of 24.4.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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