JD.com, Inc. (JD) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, JD.com, Inc. (JD) closed at $84.25, marking a +1.42% move from the previous day. This change outpaced the S&P 500's 0.48% gain on the day.
Heading into today, shares of the company had gained 12.29% over the past month, outpacing the Retail-Wholesale sector's gain of 1.4% and the S&P 500's gain of 3.46% in that time.
JD will be looking to display strength as it nears its next earnings release. On that day, JD is projected to report earnings of $0.36 per share, which would represent a year-over-year decline of 28%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.89 billion, up 32.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.42 per share and revenue of $148.01 billion, which would represent changes of -12.35% and +35.61%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for JD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JD is currently a Zacks Rank #2 (Buy).
Looking at its valuation, JD is holding a Forward P/E ratio of 58.5. For comparison, its industry has an average Forward P/E of 57.26, which means JD is trading at a premium to the group.
It is also worth noting that JD currently has a PEG ratio of 2.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. JD's industry had an average PEG ratio of 2.43 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 41% 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.
To follow JD in the coming trading sessions, be sure to utilize Zacks.com.
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