Yahoo Finance Investors Who Bought JD.com (NASDAQ:JD) Shares Three Years Ago Are Now Up 11%
Buying a low-cost index fund will get you the average market return. But if you invest in individual stocks, some are likely to underperform. For example, the JD.com, Inc. (NASDAQ:JD) share price return of 11% over three years lags the market return in the same period. Looking at more recent returns, the stock is up 9.7% in a year.
View our latest analysis for JD.com
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During three years of share price growth, JD.com moved from a loss to profitability. So we would expect a higher share price over the period.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
It is of course excellent to see how JD.com has grown profits over the years, but the future is more important for shareholders. This free interactive report on JD.com's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that JD.com shareholders have received a total shareholder return of 9.7% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 0.5% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before forming an opinion on JD.com you might want to consider these 3 valuation metrics.
We will like JD.com better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
