Chicago, IL – March 17, 2025 – Zacks Equity Research shares JD.com JD as the Bull of the Day and Bloomin’ Brands BLMN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Beyond Meat Inc. BYND and Tyson Foods Inc. TSN.
Here is a synopsis of all four stocks.
When I think of the current Chinese market, I think of legendary investor George Soros quote:
“When I see a bubble forming, I rush in to buy, adding fuel to the fire."
Another one that comes to mind is Stan Druckenmiller's liquidity quote:
“Earnings don't move the overall market; it's the Federal Reserve Board... focus on the central banks, and focus on the movement of liquidity... most people in the market are looking for earnings and conventional measures. It's liquidity that moves markets.”
As billionaire investing legend David Tepper explained in a recent interview, “When China wants to boost their stock market, the government will stop at nothing.” By the way, Tepper has more than 20% of his massive portfolio allocated to China.
Zacks Rank #1 (Strong Buy) stock JD.com is an e-commerce juggernaut and can be viewed as investors as the “Amazonof China.” The company sells a diverse suite of online products, from electronics to clothes and groceries. Like Amazon, JD.com separates itself from its competitors with its lightning-fast delivery services and reliable logistical operations (more on that later).
JD.com enjoys a massive following among Chinese e-commerce shoppers seeking convenient and efficient online shopping experiences. The company achieves its best-in-class efficiency and customer experience by leveraging technology like artificial intelligence and self-driving deliveries. JD.com has also expanded its reach beyond its core e-commerce business with its cloud computing and financial services offerings.
When investors envision an artificial intelligence play, products like OpenAI and ChatGPT or Gemini are probably top of mind. Though these large language models (LLMs) have gained users at a rapid pace and are starting to generate excess revenue for these tech juggernauts, they have yet to have a significant impact on overall earnings.
On the other hand, though JD.com is not a pure-play AI company, the company is leveraging the next generation technology, and the results are already becoming evident. JD.com is capitalizing on the AI revolution in its e-commerce business in various ways, including:
· Tailor customer experience: AI can help e-commerce companies like JD by helping customers. For example, if you are buying a table, the AI algorithm may suggest chairs to go with it.
· Improve logistics: Logistics are absolutely paramount in the e-commerce business. AI helps with efficiency, which is important because, more than ever, customers demand rapid delivery.
· Inventory management: In the past, massive e-commerce warehouses have required tons of human capital to organize. However, AI is taking over the tasks, increasing efficiency and slashing the number of employees needed.
Exploding Profit Margins
JD recently reported a 92% explosion in net income which the company attributes to increases in efficiency and cost cutting, not revenue. Management chalked up the increase in margins to “economies of scale and procurement efficiencies.” Gross profit margins are trending higher and the continued increases in efficiency are likely to be a bullish catalyst.
Wall Street is a game of expectations. It’s no secret on Wall Street that the Chinese economy has struggled dramatically over the past few years. That said, Wall Street is often too slow to pivot. As a result, JD has crushed Wall Street estimates over the past four quarters with an average beat of 25.23%.
Though JD shares have doubled since the 2024 lows, the company’s valuation is dirt cheap. JD’s price-to-sales ratio of 0.39x is near all-time lows, well off the high of more than 2.5x.
The Chinese government completed a full 180 degree turn in 2024 and delivered a massive stimulus package. As if slashing interest rates and loosening restrictions weren’t enough, Chinese government officials promise to do more moving forward. People’s Bank of China Governor Pan said that the reserve requirement ratio could be reduced again this year and that the loan prime rate will likely be lowered.
Meanwhile, China recently reported more robust growth numbers, and retail sales impressed investors. A flood of liquidity and a more robust economy bode well for Chinese stocks like JD. Also, understand that the Chinese economy is coming from such a trough that even a reversion to the mean would result in a massive move for these stocks.
JD shares are carving out the right hand side of a multi-month base structure as they find support at the rising 10-week moving average - a bullish sign.
Investing is much simpler when you have the wind at your back. Currently, the iShares China LC ETFis up 25% year-to-date, outperforming most markets globally. In addition, industry group peers like Alibabaact well, lending more credence to JD's strength.
The Chinese market, fueled by government stimulus and increased liquidity, presents a compelling investment opportunity, particularly with companies like Jd.com. JD is leveraging AI to enhance efficiency and profitability, leading to more significant growth. In addition, the company continues to smash Wall STreet expectations while trading at historically low valuations.
Zacks Rank #5 (Strong Sell) stock Bloomin’ Brands (BLMN) is a restaurant operator that runs various dining chains. BLMN is best known for Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse & Wine Bar. The company aims to provide casual and fine dining experiences across various of culinary styles.
President Donald Trump has wasted no time implementing tariffs on several countries including Canada, China, Mexico, and the European Union. Because restaurants rely on imported ingredients such as seafoods, spices, and produce, tariffs can lead to uncertainty and higher prices in many cases. In addition, tariffs can disrupt established supply chains and lead to rising equipment and supply prices.
BLMN shares have suffered long before Trump took office, however. While the restaurants that BLMN owns may be tasty, the stock has been a serial underperformer. Over the past five years, BLMN shares have been up just 14%, while the S&P 500 Index has been up 134%.
In other words, by holding BLMN shares, investors have incurred a massive opportunity cost, all while taking on single stock risk. In addition, on Wall Street, momentum begets momentum, and weakness begets weakness.
Forward earnings estimates and recent earnings revisions are among the best predictors of stock prices and are at the heart of the Zacks Ranking System. For 2025, Zacks Consensus Estimates suggest that full-year earnings growth will slow by 26.82%. Meanwhile, though earnings growth is expected to be positive in 2026, analysts see it at an abysmal 8.21%.
BLMN has slower EPS growth and sales growth than its industry. Meanwhile, the company has a net margin of -2.96% and a debt/capital ratio of 88.05%
Bloomin’ Brands faces a confluence of challenges, including potential tariff-related cost increases, significant relative price weakness compared to the broader market, declining earnings growth estimates, and fundamental weakness compared to its industry peers.
Agricultural technology (AgriTech) and food innovation companies develop technologies to enhance farming efficiency, sustainability and food production. These companies offer a compelling investment opportunity driven by the need for sustainable food production and improved food security.
AgriTech encompasses innovations such as precision farming, smart irrigation, drone technology and agricultural biotechnology, which boost crop yields, minimize resource usage, and lower food production costs and environmental impact. Food innovation, including plant-based proteins and lab-grown meat, aims to meet the growing demand for sustainable and ethical food alternatives.
At this stage, it will be prudent to invest in AgriTech and Food innovation stocks to stabilize your portfolio in 2025. Two such stocks with a favorable Zacks Rank are: Beyond Meat Inc. and Tyson Foods Inc.
AgTech and food innovation address critical global challenges such as climate change, population growth and resource scarcity. Increasing demand for sustainable food sources to feed a growing global population bolsters the market potential for these technologies. Companies operating in these industries are often at the forefront of technological advancements, offering substantial growth opportunities and the potential for high returns.
However, these are still emerging fields, with many companies in the early development stages posing higher risk and volatility. Regulatory hurdles, lengthy product development cycles, high research and development costs and slow market adoption are the other challenges. This space features companies involved in developing advanced technologies and solutions in the agriculture and food industries.
These two stocks have strong revenue and earnings growth potential for 2025. Moreover, these two stocks have seen positive earnings estimate revisions in the last 30 days. Each of our picks sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Meat
Beyond Meat is a plant-based meat company, engaged in the development, manufacture, marketing, and sale of plant-based meat products under the Beyond brand name in the United States and internationally.
BYND sells a range of plant-based meat products that replicates beef, pork, and poultry meats. BYND sells its products through grocery, mass merchandiser, club stores, and natural retailer channels, as well as various food-away-from-home channels, including restaurants, foodservice outlets, and schools.
Beyond Meat has an expected revenue and earnings growth rate of 0.7% and 31.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.8% over the last 30 days.
Tyson Foods
Tyson Foods’ diversified multi-protein portfolio allows the company to navigate industry cycles while capitalizing on rising consumer demand for high-protein diets. With iconic brands like Tyson, Jimmy Dean and Hillshire Farm, the company benefits from strong brand loyalty and household penetration opportunities.
The Chicken segment of TSN continues to deliver robust growth, supported by operational efficiencies and rising foodservice volumes. TSN is also leveraging digital advancements and AI-driven solutions to enhance supply-chain efficiency and consumer engagement.
With a resilient business model and a multi-channel strategy, TSN remains well-positioned for long-term growth amid an evolving protein landscape. A solid first-quarter performance encouraged management to raise its adjusted operating income guidance for fiscal 2025.
Tyson Foods has an expected revenue and earnings growth rate of 0.9% and 23.6%, respectively, for the current year (ending September 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.8% over the last 30 days. TSN has a current dividend yield of 3.26%.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Tyson Foods, Inc. (TSN) : Free Stock Analysis Report
Bloomin' Brands, Inc. (BLMN) : Free Stock Analysis Report
JD.com, Inc. (JD) : Free Stock Analysis Report
Beyond Meat, Inc. (BYND) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
