JD.com, Inc. (JD) ended the recent trading session at $33.93, demonstrating a -3.33% change from the preceding day's closing price. This change lagged the S&P 500's 0.44% gain on the day. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq gained 0.7%.
Heading into today, shares of the company had gained 10.1% over the past month, outpacing the Retail-Wholesale sector's gain of 2.16% and the S&P 500's gain of 4.03%.
The investment community will be paying close attention to the earnings performance of JD.com, Inc. in its upcoming release. In that report, analysts expect JD.com, Inc. to post earnings of $0.44 per share. This would mark a year-over-year decline of 64.52%. Our most recent consensus estimate is calling for quarterly revenue of $41.21 billion, up 11.06% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $2.68 per share and revenue of $183.33 billion, which would represent changes of -37.09% and +14.04%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for JD.com, Inc. 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 business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, JD.com, Inc. boasts a Zacks Rank of #3 (Hold).
Investors should also note JD.com, Inc.'s current valuation metrics, including its Forward P/E ratio of 13.11. This valuation marks a discount compared to its industry average Forward P/E of 21.17.
Investors should also note that JD has a PEG ratio of 3.37 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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JD.com, Inc. (JD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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