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JD.com, Inc. (JD) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, JD.com, Inc. (JD - Free Report) closed at $82.14, marking a +1.1% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.42%.

Coming into today, shares of the company had lost 6.72% in the past month. In that same time, the Retail-Wholesale sector gained 2.7%, while the S&P 500 gained 6.32%.

Investors will be hoping for strength from JD as it approaches its next earnings release. The company is expected to report EPS of $0.45, up 60.71% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.57 billion, up 43.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.88 per share and revenue of $142.52 billion, which would represent changes of +16.05% and +30.58%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 21.49% lower. JD is currently sporting a Zacks Rank of #5 (Strong Sell).

Digging into valuation, JD currently has a Forward P/E ratio of 44.42. This represents a discount compared to its industry's average Forward P/E of 61.39.

We can also see that JD currently has a PEG ratio of 0.97. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.24 based on yesterday's closing prices.

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 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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