Back to top

Image: Bigstock

JD.com, Inc. (JD) Declines More Than Market: Some Information for Investors

Read MoreHide Full Article

JD.com, Inc. (JD - Free Report) closed at $33.38 in the latest trading session, marking a -2.86% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 0.99%. Elsewhere, the Dow saw a downswing of 0.23%, while the tech-heavy Nasdaq depreciated by 1.58%.

Shares of the company have depreciated by 5% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 1.6%, and the S&P 500's gain of 3.59%.

Investors will be eagerly watching for the performance of JD.com, Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.46, indicating a 62.9% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $41.33 billion, indicating a 11.4% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.8 per share and a revenue of $185.84 billion, signifying shifts of -34.27% and +15.61%, respectively, from the last year.

It is also important to note the 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate has moved 3.51% higher within the past month. JD.com, Inc. currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that JD.com, Inc. has a Forward P/E ratio of 12.29 right now. Its industry sports an average Forward P/E of 22.87, 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 2.94. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.52.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 150, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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