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JD.com, Inc. (JD) Ascends But Remains Behind Market: Some Facts to Note

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JD.com, Inc. (JD - Free Report) closed the latest trading day at $40, indicating a +0.25% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.42%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq gained 0.38%.

The company's stock has climbed by 47.78% in the past month, exceeding the Retail-Wholesale sector's gain of 6.34% and the S&P 500's gain of 2.06%.

The upcoming earnings release of JD.com, Inc. will be of great interest to investors. On that day, JD.com, Inc. is projected to report earnings of $1.03 per share, which would represent year-over-year growth of 11.96%. Our most recent consensus estimate is calling for quarterly revenue of $35.8 billion, up 5.44% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.98 per share and revenue of $157.16 billion, which would represent changes of +27.56% and +3.3%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for JD.com, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.27% rise in the Zacks Consensus EPS estimate. At present, JD.com, Inc. boasts a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, JD.com, Inc. is holding a Forward P/E ratio of 10.02. This indicates a discount in contrast to its industry's Forward P/E of 22.6.

It's also important to note that JD currently trades at a PEG ratio of 0.57. 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. The Internet - Commerce industry had an average PEG ratio of 1.07 as trading concluded yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 23% of over 250 industries.

The Zacks Industry Rank is ordered 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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