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JD.com, Inc. (JD) Gains But Lags Market: What You Should Know

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In the latest trading session, JD.com, Inc. (JD - Free Report) closed at $60.18, marking a +1.01% move from the previous day. This move lagged the S&P 500's daily gain of 1.54%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 1.87%.

Prior to today's trading, shares of the company had gained 8.86% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.13% and the S&P 500's gain of 0.57% in that time.

JD will be looking to display strength as it nears its next earnings release. In that report, analysts expect JD to post earnings of $0 per share. This would mark a year-over-year decline of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $26.98 billion, up 23.24% from the prior-year quarter.

JD's full-year Zacks Consensus Estimates are calling for earnings of $1.25 per share and revenue of $100.37 billion. These results would represent year-over-year changes of +20.19% and +20.48%, respectively.

It is also important to note the recent changes to analyst estimates for JD. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JD is holding a Zacks Rank of #1 (Strong Buy) right now.

Digging into valuation, JD currently has a Forward P/E ratio of 47.66. Its industry sports an average Forward P/E of 47.66, so we one might conclude that JD is trading at a no noticeable deviation comparatively.

Investors should also note that JD has a PEG ratio of 1.02 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. JD's industry had an average PEG ratio of 1.6 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 76, putting it in the top 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

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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