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JD.com, Inc. (JD) Dips More Than Broader Markets: What You Should Know

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JD.com, Inc. (JD - Free Report) closed at $32.98 in the latest trading session, marking a -0.42% move from the prior day. This move lagged the S&P 500's daily loss of 0.12%. Elsewhere, the Dow gained 0.11%, while the tech-heavy Nasdaq added 0.02%.

Coming into today, shares of the company had gained 14.8% in the past month. In that same time, the Retail-Wholesale sector gained 2.92%, while the S&P 500 gained 4.42%.

Investors will be hoping for strength from JD as it approaches its next earnings release, which is expected to be November 15, 2019. On that day, JD is projected to report earnings of $0.18 per share, which would represent year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.40 billion, up 20.62% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.95 per share and revenue of $80.46 billion. These totals would mark changes of +179.41% and +16.09%, respectively, from last year.

Any recent changes to analyst estimates for JD should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JD is currently a Zacks Rank #2 (Buy).

Investors should also note JD's current valuation metrics, including its Forward P/E ratio of 35.05. For comparison, its industry has an average Forward P/E of 25.25, which means JD is trading at a premium to the group.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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