You’re reading Entrepreneur United States, an international franchise of Entrepreneur Media.
This story originally appeared on Zacks
In the latest trading session, JD.com, Inc. (JD) closed at $71.87, marking a +0.35% move from the previous day. This move lagged the S&P 500’s daily gain of 0.41%.
Prior to today’s trading, shares of the company had lost 13.96% over the past month. This has lagged the Retail-Wholesale sector’s loss of 7.3% and the S&P 500’s loss of 4.08% in that time.
Wall Street will be looking for positivity from JD as it approaches its next earnings report date. The company is expected to report EPS of $0.40, down 20% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.67 billion, up 35.1% from the year-ago period.
JD’s full-year Zacks Consensus Estimates are calling for earnings of $1.45 per share and revenue of $148.96 billion. These results would represent year-over-year changes of -10.49% and +36.48%, respectively.
Investors should also note any recent changes to analyst estimates for JD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.65% higher. JD is currently a Zacks Rank #5 (Strong Sell).
Looking at its valuation, JD is holding a Forward P/E ratio of 49.28. Its industry sports an average Forward P/E of 46.79, so we one might conclude that JD is trading at a premium comparatively.
It is also worth noting that JD currently has a PEG ratio of 1.83. 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. Internet – Commerce stocks are, on average, holding a PEG ratio of 2.35 based on yesterday’s closing prices.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 205, which puts it in the bottom 20% 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.
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
JD.com, Inc. (JD): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research