JD.com, Inc. (JD) Dips More Than Broader Markets: What You Should Know

JD.com, Inc. (JD) closed the most recent trading day at $78.12, moving -0.86% from the previous trading session. This move lagged the S&P 500's daily loss of 0.41%.

Prior to today's trading, shares of the company had lost 8.12% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.33% and the S&P 500's gain of 5.07% in that time.

JD will be looking to display strength as it nears its next earnings release. On that day, JD is projected to report earnings of $0.45 per share, which would represent year-over-year growth of 60.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.57 billion, up 43.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.88 per share and revenue of $142.52 billion, which would represent changes of +16.05% and +30.58%, respectively, from the prior 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. JD is holding a Zacks Rank of #5 (Strong Sell) right now.

In terms of valuation, JD is currently trading at a Forward P/E ratio of 41.92. This represents a discount compared to its industry's average Forward P/E of 62.57.

We can also see that JD currently has a PEG ratio of 0.92. 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. The Internet - Commerce industry currently had an average PEG ratio of 2.41 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 211, putting it in the bottom 17% 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.

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