Back to top

Image: Bigstock

JD.com, Inc. (JD) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

JD.com, Inc. (JD - Free Report) closed the most recent trading day at $30.29, moving +0.5% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.38%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.73%.

Prior to today's trading, shares of the company had gained 15.88% over the past month. This has outpaced the Retail-Wholesale sector's gain of 5.06% and the S&P 500's gain of 3.19% in that time.

Investors will be hoping for strength from JD as it approaches its next earnings release. In that report, analysts expect JD to post earnings of $0.10 per share. This would mark year-over-year growth of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $21.75 billion, up 17.69% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.68 per share and revenue of $81.36 billion. These totals would mark changes of +100% and +17.39%, respectively, from last year.

Any recent changes to analyst estimates for JD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JD is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, JD is currently trading at a Forward P/E ratio of 44.32. This represents a premium compared to its industry's average Forward P/E of 27.1.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 33% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow JD in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


JD.com, Inc. (JD) - free report >>

Published in