JD.com, Inc. (JD) closed the most recent trading day at $32.64, moving -1.3% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.52% for the day. At the same time, the Dow added 0.63%, and the tech-heavy Nasdaq gained 0.48%.
Heading into today, shares of the company had gained 2.04% over the past month, lagging the Retail-Wholesale sector's gain of 2.65% and the S&P 500's gain of 4.27%.
Investors will be eagerly watching for the performance of JD.com, Inc. in its upcoming earnings disclosure. On that day, JD.com, Inc. is projected to report earnings of $0.77 per share, which would represent a year-over-year decline of 40.31%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $46.85 billion, up 16.84% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.94 per share and revenue of $179.1 billion, which would represent changes of -7.51% and +11.41%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for JD.com, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. JD.com, Inc. presently features a Zacks Rank of #3 (Hold).
Investors should also note JD.com, Inc.'s current valuation metrics, including its Forward P/E ratio of 8.39. Its industry sports an average Forward P/E of 24.95, so one might conclude that JD.com, Inc. is trading at a discount comparatively.
It is also worth noting that JD currently has a PEG ratio of 1.02. 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 1.41 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JD.com, Inc. (JD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
