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JD.com, Inc. (JD) Stock Sinks As Market Gains: What You Should Know

JD.com, Inc. (JD) closed at $62.13 in the latest trading session, marking a -0.27% move from the prior day. This change lagged the S&P 500's daily gain of 1.34%. Meanwhile, the Dow gained 2.13%, and the Nasdaq, a tech-heavy index, added 0.94%.

Heading into today, shares of the company had gained 4.69% over the past month, lagging the Retail-Wholesale sector's gain of 11.54% and outpacing the S&P 500's gain of 3.92% in that time.

Wall Street will be looking for positivity from JD as it approaches its next earnings report date. On that day, JD is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 15.15%. Our most recent consensus estimate is calling for quarterly revenue of $26.98 billion, up 23.24% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.25 per share and revenue of $100.37 billion. These totals would mark changes of +20.19% and +20.48%, respectively, from last year.

Any recent changes to analyst estimates for JD should also be noted by investors. 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 company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JD is currently a Zacks Rank #1 (Strong Buy).

Valuation is also important, so investors should note that JD has a Forward P/E ratio of 49.84 right now. This valuation marks a premium compared to its industry's average Forward P/E of 42.53.

Investors should also note that JD has a PEG ratio of 1.07 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry currently had an average PEG ratio of 2.43 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 96, which puts it in the top 38% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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