JD.com, Inc. (JD - Free Report) closed at $39.94 in the latest trading session, marking a -1.02% move from the prior day. This change lagged the S&P 500's 1.13% gain on the day. Elsewhere, the Dow gained 1.68%, while the tech-heavy Nasdaq added 0.43%.
Coming into today, shares of the company had gained 5.3% in the past month. In that same time, the Retail-Wholesale sector gained 2.45%, while the S&P 500 gained 2.1%.
Wall Street will be looking for positivity from JD as it approaches its next earnings report date. On that day, JD is projected to report earnings of $0.07 per share, which would represent no growth from the year-ago period. Our most recent consensus estimate is calling for quarterly revenue of $23.78 billion, up 21.27% from the year-ago period.
It is also important to note the recent changes to analyst estimates for JD. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.62% lower within the past month. JD is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, JD is holding a Forward P/E ratio of 28.27. For comparison, its industry has an average Forward P/E of 24.09, which means JD is trading at a premium to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% 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.