In the latest trading session, JD.com, Inc. (JD) closed at $30.31, marking a +0.07% move from the previous day. This move lagged the S&P 500's daily gain of 0.22%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.6%.
Prior to today's trading, shares of the company had gained 3.2% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.13% and the S&P 500's gain of 2.39% in that time.
JD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.14, up 27.27% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.80 billion, up 11.49% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.54 per share and revenue of $81.18 billion, which would represent changes of +58.82% and +17.13%, 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JD is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note JD's current valuation metrics, including its Forward P/E ratio of 55.83. This valuation marks a premium compared to its industry's average Forward P/E of 27.64.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 168, which puts it in the bottom 35% 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.
To follow JD in the coming trading sessions, be sure to utilize Zacks.com.
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