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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) ended the recent trading session at $26.35, demonstrating a +2.61% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.51%. Meanwhile, the Dow gained 0.41%, and the Nasdaq, a tech-heavy index, lost 1.07%.

Heading into today, shares of the company had lost 0.39% over the past month, lagging the Retail-Wholesale sector's gain of 3.73% and outpacing the S&P 500's loss of 0.87%.

Market participants will be closely following the financial results of JD.com, Inc. in its upcoming release. The company is predicted to post an EPS of $1.05, indicating a 101.92% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $46.27 billion, showing a 10.15% escalation compared to the year-ago quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.25 per share and revenue of $201.84 billion. These totals would mark changes of +27.45% and +9.9%, respectively, from last year.

Investors might also notice 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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 2.85% lower. JD.com, Inc. currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, JD.com, Inc. is currently exchanging hands at a Forward P/E ratio of 7.9. This represents a discount compared to its industry average Forward P/E of 15.02.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 188, placing it within the bottom 24% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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