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JD.com (JD) Gains 12.8% in 6 Months: What's Next for Investors?
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JD.com (JD - Free Report) has seen its stock price climb 12.8% in the past six months, outperforming the Zacks Internet-Commerce industry and the Zacks Retail-Wholesale sector’s rise of 9.8% and 8.1%, respectively.
The China-based e-commerce and technology company is benefiting from solid momentum in JD Retail, driven by strength in its e-commerce business, which is comprised of online retail and marketplace e-commerce platforms.
A wide range of product categories, including electronics products, home appliances and a large variety of other general merchandise categories, are boosting customer engagement on online retail platform.
Growing relationships with third-party merchants, who are continuously introducing products like premium international brands, are driving customer momentum on its marketplace platform.
Apart from JD Retail, strength in JD Logistics, driven by an expanding fulfillment network, is a plus for the company.
Strategic investments and a deepening focus on the innovation of products and services with the power of advanced technologies are playing a vital role in shaping the growth trajectory of the company.
Six-Month Price Performance
Image Source: Zacks Investment Research
Strong Retail Strategies Aid Prospects
JD.com has built and operates its nationwide fulfillment infrastructure that supports its e-commerce business. Its speedy, efficient and reliable fulfillment services deliver an enhanced shopping experience.
The company’s majority-owned subsidiary, Dada, which is a local on-demand retail and delivery platform in China, in cooperation with JD Logistics, provides customers with on-demand and last-mile delivery services for a wide selection of grocery and other fresh products through JD Daojia.
JD offers various digital marketing services to marketers on its e-commerce platform, including suppliers and third-party merchants. Its Artificial Intelligence (AI)-powered digital marketing platform provides comprehensive digital branding and performance-based marketing solutions, and various effective measurement tools, which help marketers in reaching targeted audiences, and attracting and retaining customers.
The platform also features marketing tools for online marketing message creation, targeting, bidding, deployment and budget allocation, which enables marketers to manage their digital marketing strategies and spending efficiently. JD.com’s strength in the supply-chain field is boosting its presence in the retail industry. Its supply chain-based technology and services manage upstream manufacturing and procurement, logistics, distribution, and retail to end customers.
The company has developed robust supply-chain-based technology in three key areas, namely AI, big data analytics and cloud computing, with the help of which it built a smart supply-chain platform that includes application-level products supporting many use cases that are applicable to its business and ecosystem.
With the help of these, the company enjoys strong relationships with several suppliers, brands and partners.
The company also focuses deeply on empowering traditional offline retailers by leveraging its strong online presence, industry know-how and technology advancements.
With the help of these, JD has a strong e-commerce relationship with Walmart (WMT - Free Report) . It supports Walmart and Sam’s Club Flagship Stores on its platform and provides them with fulfillment solutions.
JD.com’s strong omni-channel initiatives are other positives. In this regard, its strategic partnership with Dada, which has tie-ups with a large number of well-known chain retailers and many first-tier international and domestic FMCG brands, bodes well.
The company is also making strides in the offline fresh food market on the back of its 7FRESH, which is part of its omni-channel strategy.
The opening of JD MALL, which is an offline store that offers omni-channel shopping experiences, is noteworthy. JD MALL provides more than 200,000 items from above 200 brands in categories such as home, furniture, kids, smart healthcare products and auto accessories. It also stocks electronic products.
Conclusion
JD.com’s long-term prospects are expected to benefit from the growing momentum in its retail business, owing to the growing relationships with third-party merchants, digital marketing services, omni-channel efforts and logistics services. The company’s initiative to offer better customer experience through its content-rich, user-friendly and highly personalized mobile app is a positive. JD’s strong efforts to empower its business with advanced technologies like AI are expected to strengthen its business prospects.
The Zacks Consensus Estimate for 2024 revenues is pegged at $155.93 billion, indicating year-over-year growth of 2.5%.
The consensus mark for 2024 earnings is pegged at $3.40 per share, suggesting year-over-year growth of 8.9%. The figure has moved north by 2.1% over the past 30 days.
Image Source: Zacks Investment Research
Moreover, JD is currently trading at a discount with a forward 12-month P/S of 0.25X compared with the industry’s 1.66X. This shows a solid opportunity for investors.
Image Source: Zacks Investment Research
However, the company faces stiff competition from China’s e-commerce giant Alibaba (BABA - Free Report) , which does not bode well for its market position.
Also, softness in the China market and macroeconomic challenges, including high interest rates and inflationary pressure, make the near-term prospects of JD.com foggy.
Given these uncertainties, existing shareholders are advised to hold their positions, whereas prospective investors should closely monitor key developments in the company instead of rushing in to buy the stock.
Image: Bigstock
JD.com (JD) Gains 12.8% in 6 Months: What's Next for Investors?
JD.com (JD - Free Report) has seen its stock price climb 12.8% in the past six months, outperforming the Zacks Internet-Commerce industry and the Zacks Retail-Wholesale sector’s rise of 9.8% and 8.1%, respectively.
The China-based e-commerce and technology company is benefiting from solid momentum in JD Retail, driven by strength in its e-commerce business, which is comprised of online retail and marketplace e-commerce platforms.
A wide range of product categories, including electronics products, home appliances and a large variety of other general merchandise categories, are boosting customer engagement on online retail platform.
Growing relationships with third-party merchants, who are continuously introducing products like premium international brands, are driving customer momentum on its marketplace platform.
Apart from JD Retail, strength in JD Logistics, driven by an expanding fulfillment network, is a plus for the company.
Strategic investments and a deepening focus on the innovation of products and services with the power of advanced technologies are playing a vital role in shaping the growth trajectory of the company.
Six-Month Price Performance
Image Source: Zacks Investment Research
Strong Retail Strategies Aid Prospects
JD.com has built and operates its nationwide fulfillment infrastructure that supports its e-commerce business. Its speedy, efficient and reliable fulfillment services deliver an enhanced shopping experience.
The company’s majority-owned subsidiary, Dada, which is a local on-demand retail and delivery platform in China, in cooperation with JD Logistics, provides customers with on-demand and last-mile delivery services for a wide selection of grocery and other fresh products through JD Daojia.
JD offers various digital marketing services to marketers on its e-commerce platform, including suppliers and third-party merchants. Its Artificial Intelligence (AI)-powered digital marketing platform provides comprehensive digital branding and performance-based marketing solutions, and various effective measurement tools, which help marketers in reaching targeted audiences, and attracting and retaining customers.
The platform also features marketing tools for online marketing message creation, targeting, bidding, deployment and budget allocation, which enables marketers to manage their digital marketing strategies and spending efficiently.
JD.com’s strength in the supply-chain field is boosting its presence in the retail industry. Its supply chain-based technology and services manage upstream manufacturing and procurement, logistics, distribution, and retail to end customers.
The company has developed robust supply-chain-based technology in three key areas, namely AI, big data analytics and cloud computing, with the help of which it built a smart supply-chain platform that includes application-level products supporting many use cases that are applicable to its business and ecosystem.
With the help of these, the company enjoys strong relationships with several suppliers, brands and partners.
The company also focuses deeply on empowering traditional offline retailers by leveraging its strong online presence, industry know-how and technology advancements.
With the help of these, JD has a strong e-commerce relationship with Walmart (WMT - Free Report) . It supports Walmart and Sam’s Club Flagship Stores on its platform and provides them with fulfillment solutions.
JD.com’s strong omni-channel initiatives are other positives. In this regard, its strategic partnership with Dada, which has tie-ups with a large number of well-known chain retailers and many first-tier international and domestic FMCG brands, bodes well.
The company is also making strides in the offline fresh food market on the back of its 7FRESH, which is part of its omni-channel strategy.
The opening of JD MALL, which is an offline store that offers omni-channel shopping experiences, is noteworthy. JD MALL provides more than 200,000 items from above 200 brands in categories such as home, furniture, kids, smart healthcare products and auto accessories. It also stocks electronic products.
Conclusion
JD.com’s long-term prospects are expected to benefit from the growing momentum in its retail business, owing to the growing relationships with third-party merchants, digital marketing services, omni-channel efforts and logistics services. The company’s initiative to offer better customer experience through its content-rich, user-friendly and highly personalized mobile app is a positive. JD’s strong efforts to empower its business with advanced technologies like AI are expected to strengthen its business prospects.
The Zacks Consensus Estimate for 2024 revenues is pegged at $155.93 billion, indicating year-over-year growth of 2.5%.
The consensus mark for 2024 earnings is pegged at $3.40 per share, suggesting year-over-year growth of 8.9%. The figure has moved north by 2.1% over the past 30 days.
Image Source: Zacks Investment Research
Moreover, JD is currently trading at a discount with a forward 12-month P/S of 0.25X compared with the industry’s 1.66X. This shows a solid opportunity for investors.
Image Source: Zacks Investment Research
However, the company faces stiff competition from China’s e-commerce giant Alibaba (BABA - Free Report) , which does not bode well for its market position.
Also, softness in the China market and macroeconomic challenges, including high interest rates and inflationary pressure, make the near-term prospects of JD.com foggy.
Given these uncertainties, existing shareholders are advised to hold their positions, whereas prospective investors should closely monitor key developments in the company instead of rushing in to buy the stock.
Currently, JD.com carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.