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JD.com, Inc. (JD) Gains But Lags Market: What You Should Know

Zacks

JD.com, Inc. (JD) closed the most recent trading day at $27.76, moving +0.49% from the previous trading session. This change lagged the S&P 500′s 0.53% gain on the day. Meanwhile, the Dow gained 0.57%, and the Nasdaq, a tech-heavy index, added 0.75%.

Heading into today, shares of the company had lost 14.62% over the past month, lagging the Retail-Wholesale sector’s gain of 3.02% and the S&P 500′s gain of 2.16% in that time.

Wall Street will be looking for positivity from JD as it approaches its next earnings report date. This is expected to be November 12, 2018. The company is expected to report EPS of $0.16, down 30.43% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.75 billion, up 25.12% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.37 per share and revenue of $68.56 billion, which would represent changes of -28.85% and +26.17%, respectively, from the prior year.


Investors might also notice 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 31.82% higher. JD currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, JD is holding a Forward P/E ratio of 74.68. Its industry sports an average Forward P/E of 28.27, so we one might conclude that JD is trading at a premium comparatively.

The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 192, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

To follow JD in the coming trading sessions, be sure to utilize Zacks.com.


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Zacks Investment Research
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