Advertisement
Canada markets open in 5 hours 20 minutes

  • S&P/TSX

    21,885.38
    +11.66 (+0.05%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • DOW

    38,085.80
    -375.12 (-0.98%)
     

  • CAD/USD

    0.7331
    +0.0008 (+0.11%)
     

  • CRUDE OIL

    83.96
    +0.39 (+0.47%)
     

  • Bitcoin CAD

    87,837.55
    +517.59 (+0.59%)
     

  • CMC Crypto 200

    1,388.14
    -8.39 (-0.60%)
     

  • GOLD FUTURES

    2,357.50
    +15.00 (+0.64%)
     

  • RUSSELL 2000

    1,981.12
    -14.31 (-0.72%)
     

  • 10-Yr Bond

    4.7060
    +0.0540 (+1.16%)
     

  • NASDAQ futures

    17,756.00
    +188.50 (+1.07%)
     

  • VOLATILITY

    15.48
    +0.11 (+0.72%)
     

  • FTSE

    8,121.92
    +43.06 (+0.53%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • CAD/EUR

    0.6826
    +0.0005 (+0.07%)
     

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

Zacks Equity Research
Updated
Texas Capital (TCBI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

In the latest trading session, JD.com, Inc. (JD) closed at $24.14, marking a -1.27% move from the previous day. This move lagged the S&P 500's daily loss of 0.59%. At the same time, the Dow lost 0.35%, and the tech-heavy Nasdaq lost 0.88%.

Heading into today, shares of the company had lost 11.92% over the past month, lagging the Retail-Wholesale sector's loss of 9.59% and the S&P 500's loss of 4.1% in that time.

JD will be looking to display strength as it nears 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 $68.60 billion. These totals would mark changes of -36.54% and +26.25%, respectively, from last year.

ADVERTISEMENT

Investors should also note any recent changes to analyst estimates for JD. Recent revisions tend to reflect the latest near-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 currently has a Zacks Rank of #2 (Buy).

Looking at its valuation, JD is holding a Forward P/E ratio of 73.53. This valuation marks a premium compared to its industry's average Forward P/E of 28.92.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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
 
JD.com, Inc. (JD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.