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

Zacks Equity Research
·3 mins read

JD.com, Inc. (JD) closed at $76.40 in the latest trading session, marking a +0.39% move from the prior day. This move lagged the S&P 500's daily gain of 1.8%. Elsewhere, the Dow gained 1.68%, while the tech-heavy Nasdaq added 2.33%.

Heading into today, shares of the company had lost 3.72% over the past month, outpacing the Retail-Wholesale sector's loss of 6% and the S&P 500's loss of 6.31% in that time.

Wall Street will be looking for positivity from JD as it approaches its next earnings report date. On that day, JD is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 44.83%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.48 billion, up 29.74% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.51 per share and revenue of $103.77 billion. These totals would mark changes of +45.19% and +24.55%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for JD. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JD is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, JD currently has a Forward P/E ratio of 50.29. Its industry sports an average Forward P/E of 49.22, so we one might conclude that JD is trading at a premium comparatively.

It is also worth noting that JD currently has a PEG ratio of 1.01. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 3.26 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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