Yahoo Finance JD.com, Inc. (JD) Gains But Lags Market: What You Should Know
JD.com, Inc. (JD) closed at $44.36 in the latest trading session, marking a +1.79% move from the prior day. The stock lagged the S&P 500's daily gain of 2.66%. Meanwhile, the Dow gained 2.21%, and the Nasdaq, a tech-heavy index, added 3.57%.
Prior to today's trading, shares of the company had gained 7.6% over the past month. This has lagged the Retail-Wholesale sector's gain of 16.18% and the S&P 500's gain of 12.74% in that time.
JD will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0, down 100% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.17 billion, up 6.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.83 per share and revenue of $96.65 billion, which would represent changes of -20.19% and +16.01%, respectively, from the prior 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 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. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JD is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that JD has a Forward P/E ratio of 52.51 right now. This valuation marks a premium compared to its industry's average Forward P/E of 30.99.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 131, which puts it in the bottom 49% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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