JD.com, Inc. (JD) Stock Sinks As Market Gains: What You Should Know
JD.com, Inc. (JD) closed the most recent trading day at $59.77, moving -0.25% from the previous trading session. This move lagged the S&P 500's daily gain of 0.71%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.33%.
Prior to today's trading, shares of the company had lost 17.35% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.3% and the S&P 500's gain of 3.76% in that time.
JD.com, Inc. will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.40, up 5.26% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $38.37 billion, up 23.72% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.93 per share and revenue of $179.61 billion. These totals would mark changes of +14.2% and +21.72%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for JD.com, Inc.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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 15.87% lower. JD.com, Inc. is currently sporting a Zacks Rank of #5 (Strong Sell).
Digging into valuation, JD.com, Inc. currently has a Forward P/E ratio of 31.05. For comparison, its industry has an average Forward P/E of 25.97, which means JD.com, Inc. is trading at a premium to the group.
It is also worth noting that JD currently has a PEG ratio of 1.15. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.38 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 238, putting it in the bottom 7% 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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