Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, JD.com, Inc. (JD - Free Report) closed at $73.87, marking a -0.47% move from the previous day. This change lagged the S&P 500's 1.52% gain on the day.

Heading into today, shares of the company had gained 2.2% over the past month, outpacing the Retail-Wholesale sector's loss of 1.17% and lagging the S&P 500's gain of 2.41% in that time.

Wall Street will be looking for positivity from JD as it approaches its next earnings report date. On that day, JD is projected to report earnings of $0.42 per share, which would represent a year-over-year decline of 16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.34 billion, up 34.73% from the year-ago period.

JD's full-year Zacks Consensus Estimates are calling for earnings of $1.51 per share and revenue of $146.98 billion. These results would represent year-over-year changes of -6.79% and +34.66%, respectively.

Any recent changes to analyst estimates for JD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

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

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JD is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, JD is currently trading at a Forward P/E ratio of 49.04. This valuation marks a discount compared to its industry's average Forward P/E of 57.7.

Also, we should mention that JD has a PEG ratio of 1.82. 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 2.02 at yesterday's closing price.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% 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.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


JD.com, Inc. (JD) - free report >>

Published in