JD.com, Inc. (JD) closed at $62.61 in the latest trading session, marking a -1.25% move from the prior day. This change lagged the S&P 500’s daily gain of 0.17%. At the same time, the Dow added 0.6%, and the tech-heavy Nasdaq lost 0.81%.
Coming into today, shares of the company had gained 7.29% in the past month. In that same time, the Retail-Wholesale sector gained 11.13%, while the S&P 500 gained 5.15%.
Wall Street will be looking for positivity from JD as it approaches its next earnings report date. On that day, JD is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 15.15%. Our most recent consensus estimate is calling for quarterly revenue of $27.04 billion, up 23.51% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $100.93 billion. These totals would mark changes of +20.19% and +21.15%, respectively, from last year.
Investors should also note any 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.58% higher. JD is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, JD is currently trading at a Forward P/E ratio of 50.58. For comparison, its industry has an average Forward P/E of 48.18, which means JD is trading at a premium to the group.
It is also worth noting that JD currently has a PEG ratio of 1.08. 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 2.59 as of yesterday’s close.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 110, putting it in the top 44% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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