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JD.com, Inc. (JD) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, JD.com, Inc. (JD) closed at $32.20, marking a +1.1% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.47%. At the same time, the Dow lost 0.29%, and the tech-heavy Nasdaq gained 0.85%.

Prior to today's trading, shares of the company had gained 11.75% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.24% and the S&P 500's gain of 2.08% in that time.

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 $0.09 per share, which would represent year-over-year growth of 80%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.72 billion, up 17.52% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.68 per share and revenue of $81.27 billion, which would represent changes of +100% and +17.26%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for JD. Recent revisions tend to reflect the latest 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. 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 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 is currently sporting a Zacks Rank of #2 (Buy).

In terms of valuation, JD is currently trading at a Forward P/E ratio of 47.07. This represents a premium compared to its industry's average Forward P/E of 28.53.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% 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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