In the latest trading session, JD.com, Inc. (JD) closed at $30.30, marking a +1.46% move from the previous day. This move outpaced the S&P 500's daily gain of 0.1%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.66%.
Prior to today's trading, shares of the company had lost 4.46% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.75% and the S&P 500's gain of 3.95% 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 $0.14 per share, which would represent year-over-year growth of 27.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.80 billion, up 11.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.54 per share and revenue of $81.18 billion. These totals would mark changes of +58.82% and +17.13%, 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. JD currently has a Zacks Rank of #3 (Hold).
In terms of valuation, JD is currently trading at a Forward P/E ratio of 55.05. For comparison, its industry has an average Forward P/E of 28.72, which means JD is trading at a premium to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 159, putting it in the bottom 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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