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

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JD.com, Inc. (JD - Free Report) closed at $73.30 in the latest trading session, marking a +0.94% move from the prior day. This move outpaced the S&P 500's daily gain of 0.51%.

Prior to today's trading, shares of the company had gained 1.34% over the past month. This has lagged the Retail-Wholesale sector's gain of 2.15% and the S&P 500's gain of 1.75% 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 $0.42 per share. This would mark a year-over-year decline of 16%. Meanwhile, our latest consensus estimate is calling for revenue of $38.29 billion, up 34.55% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.53 per share and revenue of $147.2 billion, which would represent changes of -5.56% and +34.87%, respectively, from the prior year.

Investors might also notice 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.

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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. JD is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, JD is holding a Forward P/E ratio of 47.57. For comparison, its industry has an average Forward P/E of 57.58, which means JD is trading at a discount to the group.

Also, we should mention that JD has a PEG ratio of 1.77. 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 2.15 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 222, which puts it in the bottom 13% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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