JD.com, Inc. (JD) closed the most recent trading day at $28.20, moving +1.66% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.42%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.29%.
Shares of the company have depreciated by 1.14% over the course of the past month, underperforming the Retail-Wholesale sector’s gain of 0.24%, and the S&P 500’s gain of 2.2%.
The investment community will be closely monitoring the performance of JD.com, Inc. in its forthcoming earnings report. On that day, JD.com, Inc. is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 17.39%. In the meantime, our current consensus estimate forecasts the revenue to be $52.83 billion, indicating a 6.11% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.14 per share and a revenue of $204.58 billion, demonstrating changes of +23.14% and +11.39%, respectively, from the preceding year.
Any recent changes to analyst estimates for JD.com, Inc. should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 2.34% higher. JD.com, Inc. is currently a Zacks Rank #3 (Hold).
In terms of valuation, JD.com, Inc. is currently trading at a Forward P/E ratio of 8.83. This represents a discount compared to its industry average Forward P/E of 16.81.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 181, finds itself in the bottom 27% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
