JD.com, Inc. (JD) Stock Drops Despite Market Gains: Important Facts to Note

In the latest trading session, JD.com, Inc. (JD) closed at $34.72, marking a -0.74% move from the previous day. This change lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw a decrease of 0.06%.

Heading into today, shares of the company had lost 9.13% over the past month, lagging the Retail-Wholesale sector's loss of 4.61% and the S&P 500's loss of 2.7% in that time.

Analysts and investors alike will be keeping a close eye on the performance of JD.com, Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.80, marking a 6.67% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $45.16 billion, indicating a 4.76% increase compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for JD.com, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. JD.com, Inc. is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, JD.com, Inc. is currently trading at a Forward P/E ratio of 7.93. This indicates a discount in contrast to its industry's Forward P/E of 20.96.

Investors should also note that JD has a PEG ratio of 0.25 right now. 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 1.19.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 67, placing it within the top 27% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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