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JD.com, Inc. (JD) Dips More Than Broader Markets: What You Should Know

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JD.com, Inc. (JD - Free Report) closed the most recent trading day at $89.24, moving -1.33% from the previous trading session. This move lagged the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 0.12%.

Prior to today's trading, shares of the company had gained 10.6% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.45% and the S&P 500's gain of 4.12% in that time.

JD will be looking to display strength as it nears its next earnings release. In that report, analysts expect JD to post earnings of $0.22 per share. This would mark year-over-year growth of 175%. Meanwhile, our latest consensus estimate is calling for revenue of $33.05 billion, up 34.8% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for JD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. JD is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that JD has a Forward P/E ratio of 40.44 right now. This represents a discount compared to its industry's average Forward P/E of 49.8.

Meanwhile, JD's PEG ratio is currently 0.79. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 2.5 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 221, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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