JD.com, Inc. (JD) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, JD.com, Inc. (JD) closed at $95.10, marking a -0.22% move from the previous day. This change lagged the S&P 500's 0.03% gain on the day. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.55%.

Heading into today, shares of the company had gained 11.53% over the past month, outpacing the Retail-Wholesale sector's gain of 1.69% and the S&P 500's gain of 3.99% 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 $0.22 per share, which would represent year-over-year growth of 175%. Meanwhile, our latest consensus estimate is calling for revenue of $33.05 billion, up 34.8% from the prior-year quarter.

Any recent changes to analyst estimates for JD should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.53% higher. JD is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, JD is holding a Forward P/E ratio of 42.42. This valuation marks a discount compared to its industry's average Forward P/E of 49.6.

We can also see that JD currently has a PEG ratio of 0.83. 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. The Internet - Commerce industry currently had an average PEG ratio of 2.57 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 220, putting it in the bottom 14% 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.

To follow JD in the coming trading sessions, be sure to utilize Zacks.com.

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