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Is JD.com (JD) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is JD.com (JD - Free Report) . JD is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.48 right now. For comparison, its industry sports an average P/E of 21.92. Over the last 12 months, JD's Forward P/E has been as high as 11.39 and as low as 6.57, with a median of 8.65.

Finally, investors will want to recognize that JD has a P/CF ratio of 7.89. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.99. JD's P/CF has been as high as 11.82 and as low as 6.65, with a median of 7.92, all within the past year.

These are only a few of the key metrics included in JD.com's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, JD looks like an impressive value stock at the moment.

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