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Why the Market Dipped But JD.com, Inc. (JD) Gained Today

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JD.com, Inc. (JD - Free Report) closed at $25.42 in the latest trading session, marking a +0.12% move from the prior day. The stock's change was more than the S&P 500's daily loss of 1.2%. Elsewhere, the Dow saw a downswing of 0.65%, while the tech-heavy Nasdaq depreciated by 1.79%.

The company's stock has dropped by 7.5% in the past month, falling short of the Retail-Wholesale sector's loss of 0.91% and the S&P 500's loss of 0.85%.

Analysts and investors alike will be keeping a close eye on the performance of JD.com, Inc. in its upcoming earnings disclosure. On that day, JD.com, Inc. is projected to report earnings of $0.63 per share, which would represent a year-over-year decline of 8.7%. In the meantime, our current consensus estimate forecasts the revenue to be $35.89 billion, indicating a 1.46% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $3.14 per share and revenue of $160.06 billion, which would represent changes of +0.64% and +5.2%, respectively, from the prior year.

Investors should also note any 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, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.com, Inc. is currently sporting a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, JD.com, Inc. is currently exchanging hands at a Forward P/E ratio of 8.09. For comparison, its industry has an average Forward P/E of 20.18, which means JD.com, Inc. is trading at a discount to the group.

Meanwhile, JD's PEG ratio is currently 0.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 0.67.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 42, placing it within the top 17% of over 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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