Back to top

Image: Bigstock

Is JD.com, Inc. (JD) Stock Outpacing Its Retail-Wholesale Peers This Year?

Read MoreHide Full Article

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. JD.com, Inc. (JD - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.

JD.com, Inc. is one of 232 individual stocks in the Retail-Wholesale sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. JD.com, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past 90 days, the Zacks Consensus Estimate for JD's full-year earnings has moved 11.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, JD has returned 9.6% so far this year. Meanwhile, the Retail-Wholesale sector has returned an average of -2.5% on a year-to-date basis. This means that JD.com, Inc. is performing better than its sector in terms of year-to-date returns.

One other Retail-Wholesale stock that has outperformed the sector so far this year is Pinduoduo Inc. Sponsored ADR (PDD - Free Report) . The stock is up 3% year-to-date.

For Pinduoduo Inc. Sponsored ADR, the consensus EPS estimate for the current year has increased 152.4% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy).

Looking more specifically, JD.com, Inc. belongs to the Internet - Commerce industry, a group that includes 42 individual stocks and currently sits at #187 in the Zacks Industry Rank. Pinduoduo Inc. Sponsored ADR is also part of the same industry.

Going forward, investors interested in Retail-Wholesale stocks should continue to pay close attention to JD.com, Inc. and Pinduoduo Inc. Sponsored ADR as they could maintain their solid performance.


In-Depth Zacks Research for the Tickers Above


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


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

Pinduoduo Inc. Sponsored ADR (PDD) - free report >>

Published in