JD.com, Inc. (JD) closed the most recent trading day at $25.11, moving -1.22% from the previous trading session. This change lagged the S&P 500's 0.22% loss on the day. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Heading into today, shares of the company had gained 10.76% over the past month, outpacing the Retail-Wholesale sector's gain of 8.25% and the S&P 500's gain of 8.17% in that time.
Investors will be hoping for strength from JD as it approaches its nex t earnings release. On that day, JD is projected to report earnings of -$0.04 per share, which would represent a year-over-year decline of 180%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.15 billion, up 13.09% from the year-ago period.
Any recent changes to analyst estimates for JD should also be noted by investors. Recent revisions tend to reflect the latest 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. Over the past month, the Zacks Consensus EPS estimate has moved 24.39% lower. JD is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, JD is currently trading at a Forward P/E ratio of 51.88. Its industry sports an average Forward P/E of 31.9, 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 industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 33% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.