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In the latest market close, JD.com, Inc. (JD) reached $35.58, with a +1.44% movement compared to the previous day. The stock outperformed the S&P 500, which registered a daily loss of 3.46%. Elsewhere, the Dow lost 2.5%, while the tech-heavy Nasdaq lost 4.31%.
Shares of the company witnessed a loss of 13.12% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 5.53% and the S&P 500's loss of 5.27%.
Market participants will be closely following the financial results of JD.com, Inc. in its upcoming release. On that day, JD.com, Inc. is projected to report earnings of $1 per share, which would represent year-over-year growth of 28.21%. Alongside, our most recent consensus estimate is anticipating revenue of $40.07 billion, indicating a 11.27% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.76 per share and revenue of $173.05 billion, which would represent changes of +11.74% and +7.65%, respectively, from the prior year.
Any recent changes to analyst estimates for JD.com, Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. 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.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JD.com, Inc. presently features a Zacks Rank of #1 (Strong Buy).
Looking at valuation, JD.com, Inc. is presently trading at a Forward P/E ratio of 6.94. This valuation marks a discount compared to its industry's average Forward P/E of 20.05.
We can also see that JD currently has a PEG ratio of 0.21. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.18.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 65, finds itself in the top 27% echelons of all 250+ industries.