JD.com, Inc. (JD – Free Report) closed at $23.89 in the latest trading session, marking a +1.14% move from the prior day. This change outpaced the S&P 500’s 0.04% loss on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.67%.
Coming into today, shares of the company had lost 13.32% in the past month. In that same time, the Retail-Wholesale sector lost 3.67%, while the S&P 500 gained 0.02%.
Investors will be hoping for strength from JD as it approaches its next earnings release, which is expected to be November 12, 2018. On that day, JD is projected to report earnings of $0.13 per share, which would represent a year-over-year decline of 43.48%. Meanwhile, our latest consensus estimate is calling for revenue of $15.66 billion, up 24.43% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.33 per share and revenue of $68.11 billion. These totals would mark changes of -36.54% and +25.33%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for JD. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JD is currently a Zacks Rank #2 (Buy).
Digging into valuation, JD currently has a Forward P/E ratio of 71.04. For comparison, its industry has an average Forward P/E of 27.31, which means JD is trading at a premium to the group.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 32% 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.