Back to top

Image: Bigstock

JD.com, Inc. (JD) Registers a Bigger Fall Than the Market: Important Facts to Note

Read MoreHide Full Article

JD.com, Inc. (JD - Free Report) closed the most recent trading day at $32.23, moving -2.98% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.3% for the day. On the other hand, the Dow registered a loss of 0.46%, and the technology-centric Nasdaq decreased by 0.38%.

Coming into today, shares of the company had gained 1.78% in the past month. In that same time, the Retail-Wholesale sector gained 2.65%, while the S&P 500 gained 3.64%.

Analysts and investors alike will be keeping a close eye on the performance of JD.com, Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.5, indicating a 61.24% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $46.93 billion, indicating a 17.03% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.48 per share and a revenue of $180.05 billion, signifying shifts of -41.78% and +12%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for JD.com, Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 39.49% lower. At present, JD.com, Inc. boasts a Zacks Rank of #5 (Strong Sell).

Looking at valuation, JD.com, Inc. is presently trading at a Forward P/E ratio of 13.41. This indicates a discount in contrast to its industry's Forward P/E of 22.39.

We can additionally observe that JD currently boasts a PEG ratio of 3.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.68.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow JD in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


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


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

Published in