JD.com, Inc. (JD) closed the most recent trading day at $32.16, moving -1.58% from the previous trading session. The stock lagged the S&P 500’s daily gain of 0.03%. At the same time, the Dow added 0.06%, and the tech-heavy Nasdaq gained 0.15%.
Heading into today, shares of the company had lost 7.08% over the past month, lagging the Retail-Wholesale sector’s gain of 3.57% and the S&P 500’s gain of 2.98% in that time.
Investors will be hoping for strength from JD as it approaches its next earnings release, which is expected to be November 12, 2018. The company is expected to report EPS of $0.16, down 30.43% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.71 billion, up 24.77% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.37 per share and revenue of $68.42 billion. These totals would mark changes of -28.85% and +25.9%, respectively, from last year.
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 a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 31.82% higher. JD currently has a Zacks Rank of #2 (Buy).
In terms of valuation, JD is currently trading at a Forward P/E ratio of 88.3. This represents a premium compared to its industry’s average Forward P/E of 30.49.
Meanwhile, JD’s PEG ratio is currently 3.84. 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. JD’s industry had an average PEG ratio of 2.36 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 197, which puts it in the bottom 23% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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