In the latest trading session, JD.com, Inc. (JD) closed at $24.68, marking a +1.65% move from the previous day. This change outpaced the S&P 500's 1.29% gain on the day. Elsewhere, the Dow gained 1.49%, while the tech-heavy Nasdaq added 1.46%.
Prior to today's trading, shares of the company had gained 10.16% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.37% and the S&P 500's gain of 4.57% in that time.
Investors will be hoping for strength from JD as it approaches its nex t earnings release. The company is expected to report EPS of -$0.04, down 180% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.15 billion, up 13.09% from the year-ago period.
Investors should also note any 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 24.39% lower. JD is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, JD is currently trading at a Forward P/E ratio of 49.55. Its industry sports an average Forward P/E of 31.36, so we one might conclude that JD is trading at a premium comparatively.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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