Zacks Equity Research
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JD.com, Inc. (JD) closed at $33.88 in the latest trading session, marking a +1.44% move from the prior day. The stock’s change was more than the S&P 500’s daily gain of 0.06%. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw a decrease of 0.39%.
Shares of the company witnessed a gain of 5.73% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.04%, and underperforming the S&P 500’s gain of 5.88%.
The upcoming earnings release of JD.com, Inc. will be of great interest to investors. On that day, JD.com, Inc. is projected to report earnings of $0.5 per share, which would represent a year-over-year decline of 61.24%. Meanwhile, our latest consensus estimate is calling for revenue of $46.93 billion, up 17.03% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.48 per share and revenue of $180.05 billion, indicating changes of -41.78% and +12%, respectively, compared to the previous year.
Any recent changes to analyst estimates for JD.com, Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 39.49% lower. JD.com, Inc. is currently a Zacks Rank #5 (Strong Sell).
In the context of valuation, JD.com, Inc. is at present trading with a Forward P/E ratio of 13.48. This indicates a discount in contrast to its industry’s Forward P/E of 22.48.
One should further note that JD currently holds a PEG ratio of 3.98. 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 1.67 as trading concluded yesterday.
The Internet – Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 67, positioning it in the top 28% of all 250+ industries.
