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Is JD.com (JD) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is JD.com (JD - Free Report) . JD is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 8.89 right now. For comparison, its industry sports an average P/E of 24.45. Over the last 12 months, JD's Forward P/E has been as high as 13.23 and as low as 6.89, with a median of 9.33.

Finally, investors will want to recognize that JD has a P/CF ratio of 9.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. JD's P/CF compares to its industry's average P/CF of 16.02. JD's P/CF has been as high as 16.32 and as low as 7.46, with a median of 9.95, all within the past year.

These are just a handful of the figures considered in JD.com's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that JD is an impressive value stock right now.


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