In the latest close session, JD.com, Inc. (JD) was up +2.86% at $28.10. This change outpaced the S&P 500's 2.05% gain on the day. Meanwhile, the Dow gained 2.54%, and the Nasdaq, a tech-heavy index, added 2.27%.
The company's stock has dropped by 7.92% in the past month, falling short of the Retail-Wholesale sector's gain of 1.28% and the S&P 500's loss of 1.49%.
The investment community will be paying close attention to the earnings performance of JD.com, Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 93.14% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $50.22 billion, showing a 5.64% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.53 per share and a revenue of $187.32 billion, signifying shifts of -40.61% and +16.52%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for JD.com, Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 15.08% lower. JD.com, Inc. is currently a Zacks Rank #5 (Strong Sell).
In terms of valuation, JD.com, Inc. is presently being traded at a Forward P/E ratio of 9.6. This expresses a discount compared to the average Forward P/E of 14.85 of its industry.
Investors should also note that JD has a PEG ratio of 5.13 right now. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 0.94 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 163, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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