Are Investors Undervaluing JD.com (JD) Right Now?

JD

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

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 8.59 right now. For comparison, its industry sports an average P/E of 25.46. Over the past year, JD's Forward P/E has been as high as 14.80 and as low as 6.89, with a median of 9.87.

Finally, investors will want to recognize that JD has a P/CF ratio of 9.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JD's current P/CF looks attractive when compared to its industry's average P/CF of 16.61. Within the past 12 months, JD's P/CF has been as high as 17.92 and as low as 7.66, with a median of 10.91.

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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