Why JD.com, Inc. (JD) Outpaced the Stock Market Today
JD.com, Inc. (JD) closed the latest trading day at $23.93, indicating a +1.4% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.64%, while the tech-heavy Nasdaq appreciated by 0.19%.
The company's shares have seen a decrease of 14.96% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.63% and the S&P 500's gain of 2.48%.
The upcoming earnings release of JD.com, Inc. will be of great interest to investors. The company is expected to report EPS of $0.62, down 11.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $42.56 billion, down 0.65% from the prior-year quarter.
Investors should also pay attention to any latest changes in analyst estimates for JD.com, Inc. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JD.com, Inc. is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, JD.com, Inc. is currently exchanging hands at a Forward P/E ratio of 7.89. This indicates a discount in contrast to its industry's Forward P/E of 19.87.
It is also worth noting that JD currently has a PEG ratio of 0.18. 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. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.57.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 113, positioning it in the top 45% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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JD.com, Inc. (JD) : Free Stock Analysis Report
