In the latest close session, JD.com, Inc. (JD) was up +1.98% at $32.66. This move outpaced the S&P 500's daily loss of 0.07%. At the same time, the Dow lost 0.37%, and the tech-heavy Nasdaq gained 0.03%.
Prior to today's trading, shares of the company had lost 5.66% lagged the Retail-Wholesale sector's gain of 1.87% and the S&P 500's gain of 3.94%.
The investment community will be paying close attention to the earnings performance of JD.com, Inc. in its upcoming release. It is anticipated that the company will report an EPS of $0.77, marking a 40.31% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $46.85 billion, showing a 16.84% escalation compared to the year-ago quarter.
JD's full-year Zacks Consensus Estimates are calling for earnings of $3.6 per share and revenue of $179.46 billion. These results would represent year-over-year changes of -15.49% and +11.63%, respectively.
Investors should also note any recent changes to analyst estimates for JD.com, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 9.3% decrease. JD.com, Inc. is holding a Zacks Rank of #4 (Sell) right now.
Looking at valuation, JD.com, Inc. is presently trading at a Forward P/E ratio of 8.9. This signifies a discount in comparison to the average Forward P/E of 25 for its industry.
We can additionally observe that JD currently boasts a PEG ratio of 1.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.44.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 62, positioning it in the top 26% of all 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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