Yahoo Finance JD.com, Inc. (JD) Dips More Than Broader Markets: What You Should Know
In the latest trading session, JD.com, Inc. (JD) closed at $80.86, marking a -0.76% move from the previous day. This change lagged the S&P 500's daily loss of 0.51%.
Heading into today, shares of the company had gained 8.03% over the past month, outpacing the Retail-Wholesale sector's gain of 0.77% and the S&P 500's gain of 3.08% 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, our latest consensus estimate is calling for revenue of $33.89 billion, up 32.08% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.42 per share and revenue of $148.01 billion. These totals would mark changes of -12.35% and +35.61%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for JD. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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).
Valuation is also important, so investors should note that JD has a Forward P/E ratio of 57.38 right now. This valuation marks a discount compared to its industry's average Forward P/E of 57.87.
It is also worth noting that JD currently has a PEG ratio of 2.13. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. JD's industry had an average PEG ratio of 2.81 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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