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Image: Bigstock, Inc. (JD) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article, Inc. (JD - Free Report) closed at $90.62 in the latest trading session, marking a -0.17% move from the prior day. This change lagged the S&P 500's 1.95% gain on the day. Meanwhile, the Dow gained 1.85%, and the Nasdaq, a tech-heavy index, added 1.55%.

Prior to today's trading, shares of the company had lost 4.08% over the past month. This has was narrower than the Retail-Wholesale sector's loss of 9% and lagged the S&P 500's loss of 2.45% in that time.

JD will be looking to display strength as it nears its next earnings release, which is expected to be March 11, 2021. 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 recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JD currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, JD is holding a Forward P/E ratio of 40.4. This represents a discount compared to its industry's average Forward P/E of 44.6.

Meanwhile, JD's PEG ratio is currently 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. JD's industry had an average PEG ratio of 2.09 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 20% 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.

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