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JD.com, Inc. (JD) Beats Stock Market Upswing: What Investors Need to Know

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JD.com, Inc. (JD - Free Report) closed the most recent trading day at $35.91, moving +1.44% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.37% for the day. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 0.71%.

Coming into today, shares of the company had gained 12.56% in the past month. In that same time, the Retail-Wholesale sector gained 0.38%, while the S&P 500 gained 4.26%.

The upcoming earnings release of JD.com, Inc. will be of great interest to investors. The company is predicted to post an EPS of $0.44, indicating a 64.52% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $41.21 billion, indicating a 11.06% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $2.72 per share and a revenue of $183.33 billion, indicating changes of -36.15% and +14.04%, respectively, from the former year.

Investors should also take note of any recent adjustments 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 business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.69% lower. JD.com, Inc. currently has a Zacks Rank of #3 (Hold).

In the context of valuation, JD.com, Inc. is at present trading with a Forward P/E ratio of 13.03. Its industry sports an average Forward P/E of 21.56, so one might conclude that JD.com, Inc. is trading at a discount comparatively.

It is also worth noting that JD currently has a PEG ratio of 3.35. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.45.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 44, positioning it in the top 18% of all 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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