JD.com, Inc. (JD) Gains As Market Dips: What You Should Know

The latest trading session saw JD.com, Inc. (JD) ending at $28.59, denoting a +1.13% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.46% for the day. Elsewhere, the Dow saw a downswing of 0.98%, while the tech-heavy Nasdaq depreciated by 0.64%.

Coming into today, shares of the company had gained 3.82% in the past month. In that same time, the Retail-Wholesale sector lost 3.05%, while the S&P 500 lost 3.04%.

The investment community will be paying close attention to the earnings performance of JD.com, Inc. in its upcoming release. In that report, analysts expect JD.com, Inc. to post earnings of $0.63 per share. This would mark a year-over-year decline of 8.7%. Meanwhile, our latest consensus estimate is calling for revenue of $35.75 billion, up 1.06% from the prior-year quarter.

JD's full-year Zacks Consensus Estimates are calling for earnings of $3.14 per share and revenue of $159.24 billion. These results would represent year-over-year changes of +0.64% and +4.66%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for JD.com, Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, JD.com, Inc. is carrying a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that JD.com, Inc. has a Forward P/E ratio of 9 right now. This expresses a discount compared to the average Forward P/E of 21.16 of its industry.

One should further note that JD currently holds a PEG ratio of 0.21. 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 0.65 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 38, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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