JD.com, Inc. (JD) Gains As Market Dips: What You Should Know
JD.com, Inc. (JD) closed at $62.01 in the latest trading session, marking a +1.69% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.36%. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq gained 0.15%.
Investors will be hoping for strength from JD as it approaches its next earnings release. On that day, JD is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 15.15%. Meanwhile, our latest consensus estimate is calling for revenue of $26.98 billion, up 23.24% from the prior-year quarter.
JD's full-year Zacks Consensus Estimates are calling for earnings of $1.24 per share and revenue of $99.72 billion. These results would represent year-over-year changes of +19.23% and +19.69%, respectively.
Investors should also note any recent changes to analyst estimates for JD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently has a Zacks Rank of #1 (Strong Buy).
Digging into valuation, JD currently has a Forward P/E ratio of 49.28. Its industry sports an average Forward P/E of 49.28, so we one might conclude that JD is trading at a no noticeable deviation comparatively.
Also, we should mention that JD has a PEG ratio of 1.11. 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 was holding an average PEG ratio of 1.77 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 74, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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