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It shouldn’t come as a surprise to anyone that Chinese stocks have come under pressure over the last few months. You can’t have a trade war with your largest single customer and not expect some negative consequences. It may be tempting to come in and try to scoop some of these stocks up off the bottom. While there certainly are some names which make sense to add here, there are other stocks that you should still probably avoid. One of those stocks is today’s Bear of the Day JD.com (JD - Free Report) .
JD is currently a Zacks Rank #5 (Strong Sell) in the Internet Commerce industry which ranks in the Bottom 33% of our Zacks Industry Rank. JD.com, Inc., through its subsidiaries, operates as an e-commerce company and retail infrastructure service provider in the People's Republic of China. It operates in two segments, JD Mall and New Businesses. The company offers home appliances; mobile handsets and other digital products; desktop, laptop, and other computers, as well as printers and other office equipment; furniture and household goods; apparel; cosmetics, personal care items, and pet products; women's shoes, bags, jewelry, and luxury goods; men's shoes, sports gears, and fitness equipment; automobiles and accessories; mother and childcare products, toys, and instruments; and food, beverage, and fresh produce.
The reason for the unfavorable Zacks Rank is the series of negative earnings estimate revisions over the last sixty days. Four analysts have cut their earnings estimates for the current year and next year. The bearish revisions have dropped our Zacks Consensus Estimates from 63 cent all the way down to 25 cents for the current year. Next year’s number has come down from $1.17 all the way down to 58 cents.
Investors looking for other stocks in the same industry should check out Zacks Rank #1 (Strong Buy) Stamps.com and Chinese internet giants Alibaba (BABA - Free Report) . BABA is currently a Zacks Rank #3 (Hold).
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Bear of the Day: JD.com (JD)
It shouldn’t come as a surprise to anyone that Chinese stocks have come under pressure over the last few months. You can’t have a trade war with your largest single customer and not expect some negative consequences. It may be tempting to come in and try to scoop some of these stocks up off the bottom. While there certainly are some names which make sense to add here, there are other stocks that you should still probably avoid. One of those stocks is today’s Bear of the Day JD.com (JD - Free Report) .
JD is currently a Zacks Rank #5 (Strong Sell) in the Internet Commerce industry which ranks in the Bottom 33% of our Zacks Industry Rank. JD.com, Inc., through its subsidiaries, operates as an e-commerce company and retail infrastructure service provider in the People's Republic of China. It operates in two segments, JD Mall and New Businesses. The company offers home appliances; mobile handsets and other digital products; desktop, laptop, and other computers, as well as printers and other office equipment; furniture and household goods; apparel; cosmetics, personal care items, and pet products; women's shoes, bags, jewelry, and luxury goods; men's shoes, sports gears, and fitness equipment; automobiles and accessories; mother and childcare products, toys, and instruments; and food, beverage, and fresh produce.
The reason for the unfavorable Zacks Rank is the series of negative earnings estimate revisions over the last sixty days. Four analysts have cut their earnings estimates for the current year and next year. The bearish revisions have dropped our Zacks Consensus Estimates from 63 cent all the way down to 25 cents for the current year. Next year’s number has come down from $1.17 all the way down to 58 cents.
Investors looking for other stocks in the same industry should check out Zacks Rank #1 (Strong Buy) Stamps.com and Chinese internet giants Alibaba (BABA - Free Report) . BABA is currently a Zacks Rank #3 (Hold).
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>