For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Is JD.com (JD - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
JD.com is a member of our Retail-Wholesale group, which includes 223 different companies and currently sits at #8 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. JD is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for JD's full-year earnings has moved 41.67% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Based on the most recent data, JD has returned 33.83% so far this year. Meanwhile, stocks in the Retail-Wholesale group have gained about 16.26% on average. This means that JD.com is performing better than its sector in terms of year-to-date returns.
To break things down more, JD belongs to the Internet - Commerce industry, a group that includes 27 individual companies and currently sits at #63 in the Zacks Industry Rank. This group has gained an average of 18.98% so far this year, so JD is performing better in this area.
JD will likely be looking to continue its solid performance, so investors interested in Retail-Wholesale stocks should continue to pay close attention to the company.