JD.com, Inc. (JD) Dips More Than Broader Markets: What You Should Know
JD.com, Inc. (JD) closed the most recent trading day at $81.10, moving -1.83% from the previous trading session. This change lagged the S&P 500's 0.66% loss on the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.8%.
Coming into today, shares of the company had gained 7.29% in the past month. In that same time, the Retail-Wholesale sector gained 9.09%, while the S&P 500 gained 5.22%.
Investors will be hoping for strength from JD as it approaches its next earnings release. In that report, analysts expect JD to post earnings of $0.42 per share. This would mark year-over-year growth of 44.83%. Meanwhile, our latest consensus estimate is calling for revenue of $24.48 billion, up 29.74% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.51 per share and revenue of $103.77 billion, which would represent changes of +45.19% and +24.55%, respectively, from the prior year.
Any recent changes to analyst estimates for JD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JD is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, JD is holding a Forward P/E ratio of 54.59. Its industry sports an average Forward P/E of 52.28, so we one might conclude that JD is trading at a premium comparatively.
We can also see that JD currently has a PEG ratio of 1.1. 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. The Internet - Commerce was holding an average PEG ratio of 3.61 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 108, putting it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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