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JD.com, Inc. (JD) Dips More Than Broader Market: What You Should Know

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The latest trading session saw JD.com, Inc. (JD - Free Report) ending at $25.94, denoting a -0.31% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.04% for the day. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq added 0.03%.

Prior to today's trading, shares of the company had gained 5.13% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.07% and the S&P 500's gain of 2.57% in that time.

The investment community will be closely monitoring the performance of JD.com, Inc. in its forthcoming earnings report. The company's upcoming EPS is projected at $0.63, signifying an 8.7% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $35.89 billion, showing a 1.46% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.14 per share and revenue of $160.06 billion. These totals would mark changes of +0.64% and +5.2%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for JD.com, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 5.56% higher. Currently, JD.com, Inc. is carrying a Zacks Rank of #1 (Strong Buy).

With respect to valuation, JD.com, Inc. is currently being traded at a Forward P/E ratio of 8.29. This expresses a discount compared to the average Forward P/E of 19.46 of its industry.

Investors should also note that JD has a PEG ratio of 0.19 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 0.63.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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