Why JD.com, Inc. (JD) Outpaced the Stock Market Today

The latest trading session saw JD.com, Inc. (JD) ending at $23.56, denoting a +1.82% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. Elsewhere, the Dow gained 0.91%, while the tech-heavy Nasdaq added 0.3%.

Shares of the company witnessed a gain of 3.21% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 5.24% and the S&P 500's gain of 4.61%.

The investment community will be paying close attention to the earnings performance of JD.com, Inc. in its upcoming release. The company is forecasted to report an EPS of $0.65, showcasing a 7.14% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $42.56 billion, down 0.65% from the year-ago period.

It's also important for investors to be aware of any recent modifications to analyst estimates for JD.com, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 3.65% upward. JD.com, Inc. is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, JD.com, Inc. is at present trading with a Forward P/E ratio of 7.59. This represents a discount compared to its industry's average Forward P/E of 18.41.

It is also worth noting that JD currently has a PEG ratio of 0.17. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Commerce industry had an average PEG ratio of 0.58 as trading concluded yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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JD.com, Inc. (JD) : Free Stock Analysis Report

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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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