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JD.com, Inc. (JD) Gains But Lags Market: What You Should Know

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In the latest trading session, JD.com, Inc. (JD - Free Report) closed at $95.50, marking a +0.08% move from the previous day. This change lagged the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.02%.

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 $0.22 per share. This would mark year-over-year growth of 175%. Our most recent consensus estimate is calling for quarterly revenue of $33.05 billion, up 34.8% from the year-ago period.

Any recent changes to analyst estimates for JD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate has moved 0.53% higher within the past month. JD is holding a Zacks Rank of #2 (Buy) right now.

Valuation is also important, so investors should note that JD has a Forward P/E ratio of 40.63 right now. Its industry sports an average Forward P/E of 46.6, so we one might conclude that JD is trading at a discount comparatively.

It is also worth noting that JD currently has a PEG ratio of 0.79. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce was holding an average PEG ratio of 3.18 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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