JD.com, Inc. (JD) ended the recent trading session at $42.24, demonstrating a -1.72% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw an upswing of 0.08%, while the tech-heavy Nasdaq appreciated by 0.52%.
Coming into today, shares of the company had gained 4.35% in the past month. In that same time, the Retail-Wholesale sector lost 9.1%, while the S&P 500 lost 7.33%.
The investment community will be closely monitoring the performance of JD.com, Inc. in its forthcoming earnings report. The company is expected to report EPS of $1.08, up 38.46% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $40.07 billion, indicating a 11.27% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.58 per share and revenue of $173.05 billion, indicating changes of +7.51% and +7.65%, respectively, compared to the previous 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. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.84% increase. At present, JD.com, Inc. boasts a Zacks Rank of #1 (Strong Buy).
In the context of valuation, JD.com, Inc. is at present trading with a Forward P/E ratio of 9.39. This represents a discount compared to its industry's average Forward P/E of 21.86.
Also, we should mention that JD has a PEG ratio of 0.29. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.16.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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