In the latest trading session, JD.com, Inc. (JD) closed at $23.72, marking a +0.38% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.79%. Meanwhile, the Dow lost 0.85%, and the Nasdaq, a tech-heavy index, lost 1.11%.
Coming into today, shares of the company had gained 8.89% in the past month. In that same time, the Retail-Wholesale sector gained 16.5%, while the S&P 500 gained 13.44%.
Investors will be hoping for strength from JD as it approaches its nex t earnings release, which is expected to be March 1, 2019. In tha t report , analysts expect JD to post earnings of -$0.04 per share. This would mark a year-over-year decline of 180%. Meanwhile, our latest consensus estimate is calling for revenue of $19.15 billion, up 13.09% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for JD. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. The Zacks Consensus EPS estimate has moved 24.39% lower within the past month. JD is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that JD has a Forward P/E ratio of 48.22 right now. This represents a premium compared to its industry's average Forward P/E of 30.69.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 41% 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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