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JD.com, Inc. (JD) Gains As Market Dips: What You Should Know

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JD.com, Inc. (JD - Free Report) closed at $78.41 in the latest trading session, marking a +0.53% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.24%.

Prior to today's trading, shares of the company had lost 2.71% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 5% and lagged the S&P 500's loss of 2.12% in that time.

Investors will be hoping for strength from JD as it approaches its next earnings release. The company is expected to report EPS of $0.40, down 20% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.67 billion, up 35.1% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.45 per share and revenue of $148.96 billion, which would represent changes of -10.49% and +36.48%, respectively, from the prior year.

Any recent changes to analyst estimates for JD should also be noted by investors. Recent revisions tend to reflect the latest near-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. 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, 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. The Zacks Consensus EPS estimate has moved 0.65% higher within the past month. JD is currently sporting a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that JD has a Forward P/E ratio of 53.67 right now. Its industry sports an average Forward P/E of 53.72, so we one might conclude that JD is trading at a discount comparatively.

We can also see that JD currently has a PEG ratio of 2. 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. The Internet - Commerce was holding an average PEG ratio of 2.36 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 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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