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

Zacks Equity Research
·3 mins read

JD.com, Inc. (JD) closed at $76.10 in the latest trading session, marking a +1.92% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.61%. Elsewhere, the Dow gained 1.51%, while the tech-heavy Nasdaq added 1.87%.

Prior to today's trading, shares of the company had lost 5.84% over the past month. This has lagged the Retail-Wholesale sector's loss of 4.77% and the S&P 500's loss of 4.08% 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 $0.42 per share, which would represent year-over-year growth of 44.83%. Meanwhile, our latest consensus estimate is calling for revenue of $24.48 billion, up 29.74% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.51 per share and revenue of $103.77 billion. These totals would mark changes of +45.19% and +24.55%, 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection remained stagnant. JD is currently sporting a Zacks Rank of #1 (Strong Buy).

Digging into valuation, JD currently has a Forward P/E ratio of 49.34. For comparison, its industry has an average Forward P/E of 49.27, which means JD is trading at a premium to the group.

Meanwhile, JD's PEG ratio is currently 0.99. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. JD's industry had an average PEG ratio of 3.22 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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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