JD.com, Inc. (JD) Gains But Lags Market: What You Should Know
JD.com, Inc. (JD) closed the most recent trading day at $41.35, moving +1% from the previous trading session. This move lagged the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 2.39%, while the tech-heavy Nasdaq lost 0.45%.
Prior to today's trading, shares of the company had gained 5.59% over the past month. This has outpaced the Retail-Wholesale sector's loss of 15.08% and the S&P 500's loss of 24.07% in that time.
JD will be looking to display strength as it nears its next earnings release. In that report, analysts expect JD to post earnings of $0 per share. This would mark a year-over-year decline of 100%. Meanwhile, our latest consensus estimate is calling for revenue of $19.17 billion, up 6.28% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $96.89 billion. These totals would mark changes of -20.19% and +16.29%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for JD. 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, 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. The Zacks Consensus EPS estimate has moved 61.52% lower within the past month. JD currently has a Zacks Rank of #3 (Hold).
Digging into valuation, JD currently has a Forward P/E ratio of 49.41. For comparison, its industry has an average Forward P/E of 17.83, which means JD is trading at a premium to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 141, which puts it in the bottom 45% 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.
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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.