In the latest trading session, JD.com, Inc. (JD) closed at $37.99, marking a +0.69% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.71%. Meanwhile, the Dow lost 0.81%, and the Nasdaq, a tech-heavy index, lost 0.79%.
Prior to today's trading, shares of the company had gained 15.95% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.83% and the S&P 500's gain of 4.77% 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 $0.09, up 28.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $23.78 billion, up 21.27% from the year-ago period.
It is also important to note the recent changes to analyst estimates for JD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. JD currently has a Zacks Rank of #1 (Strong Buy).
Investors should also note JD's current valuation metrics, including its Forward P/E ratio of 25.71. This represents a premium compared to its industry's average Forward P/E of 24.97.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 23% 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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JD.com, Inc. (JD) : Free Stock Analysis Report
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