Back to top

Image: Bigstock

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

Read MoreHide Full Article

JD.com, Inc. (JD - Free Report) closed the most recent trading day at $51.65, moving +1.2% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.25%. At the same time, the Dow lost 0.26%, and the tech-heavy Nasdaq lost 0.54%.

Heading into today, shares of the company had lost 10.19% over the past month, outpacing the Retail-Wholesale sector's loss of 16.19% and the S&P 500's loss of 11.03% in that time.

JD.com, Inc. will be looking to display strength as it nears its next earnings release, which is expected to be May 17, 2022. The company is expected to report EPS of $0.34, down 10.53% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $36.5 billion, up 17.71% from the year-ago period.

JD's full-year Zacks Consensus Estimates are calling for earnings of $1.89 per share and revenue of $171.28 billion. These results would represent year-over-year changes of +11.83% and +16.08%, respectively.

Investors might also notice recent changes to analyst estimates for JD.com, Inc.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.

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. The Zacks Consensus EPS estimate has moved 10.82% lower within the past month. JD.com, Inc. is holding a Zacks Rank of #5 (Strong Sell) right now.

Investors should also note JD.com, Inc.'s current valuation metrics, including its Forward P/E ratio of 27. For comparison, its industry has an average Forward P/E of 20.68, which means JD.com, Inc. is trading at a premium to the group.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 214, which puts 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.

You can find more information on all of these metrics, and much 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