The latest trading session saw JD.com, Inc. (JD) ending at $40.30, denoting a -1.03% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 1.46%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq lost 3.07%.
Shares of the company have appreciated by 16.41% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 1.08%.
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 $0.88, marking a 17.33% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $45.64 billion, indicating a 5.86% growth compared to the corresponding quarter of the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for JD.com, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Within the past 30 days, our consensus EPS projection has moved 2.05% higher. At present, JD.com, Inc. boasts a Zacks Rank of #2 (Buy).
Investors should also note JD.com, Inc.'s current valuation metrics, including its Forward P/E ratio of 9.12. Its industry sports an average Forward P/E of 21.67, so one might conclude that JD.com, Inc. is trading at a discount comparatively.
We can additionally observe that JD currently boasts a PEG ratio of 0.29. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce was holding an average PEG ratio of 1.18 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 70, placing it within the top 28% of over 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
