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JD.com (JD) Surges 14.4%: Is This an Indication of Further Gains?

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JD.com, Inc. (JD - Free Report) shares soared 14.4% in the last trading session to close at $37.99. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 28% gain over the past four weeks.

JD.com extended its rally, driven by the latest stimulus measures announced by the People’s Bank of China to revive flagging economic growth of China. The measures include interest rates cut which would reduce borrowing costs and prevent scores of debt-laden property owners. Secondly, central bank will ease restrictions on borrowing to invest in stocks and shares on Chinese exchanges.

This company is expected to post quarterly earnings of $1.02 per share in its upcoming report, which represents a year-over-year change of +10.9%. Revenues are expected to be $35.8 billion, up 5.4% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For JD.com, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on JD going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

JD.com is part of the Zacks Internet - Commerce industry. RumbleON, Inc. (RMBL - Free Report) , another stock in the same industry, closed the last trading session 1.2% higher at $4.32. RMBL has returned -6.1% in the past month.

RumbleON's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.11. Compared to the company's year-ago EPS, this represents a change of +84.5%. RumbleON currently boasts a Zacks Rank of #3 (Hold).


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