In the latest trading session, JD.com, Inc. (JD) closed at $21.71, marking a +0.05% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.12%. Elsewhere, the Dow lost 0.33%, while the tech-heavy Nasdaq added 0.08%.
Heading into today, shares of the company had gained 3.48% over the past month, outpacing the Retail-Wholesale sector's loss of 7.25% and the S&P 500's loss of 6.96% in that time.
Investors will be hoping for strength from JD as it approaches its next earnings release, which is expected to be March 1, 2019. The company is expected to report EPS of -$0.04, down 180% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.15 billion, up 13.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.21 per share and revenue of $66.58 billion. These totals would mark changes of -59.62% and +22.53%, respectively, from last year.
Any recent changes to analyst estimates for JD should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. JD currently has a Zacks Rank of #3 (Hold).
In terms of valuation, JD is currently trading at a Forward P/E ratio of 101.72. This represents a premium compared to its industry's average Forward P/E of 25.62.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 19% 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.
To follow JD in the coming trading sessions, be sure to utilize Zacks.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.