JD.com, Inc. (JD) closed the most recent trading day at $41.99, moving +1.03% from the previous trading session. The stock outpaced the S&P 500’s daily loss of 0.16%. At the same time, the Dow lost 0.12%, and the tech-heavy Nasdaq lost 0.33%.
Coming into today, shares of the company had gained 4.13% in the past month. In that same time, the Retail-Wholesale sector lost 5.75%, while the S&P 500 lost 10.5%.
Wall Street will be looking for positivity from JD as it approaches its next earnings report date. On that day, JD is projected to report earnings of $0 per share, which would represent a year-over-year decline of 100%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.17 billion, up 6.28% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $96.89 billion. These totals would mark changes of -20.19% and +16.29%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for JD. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. JD is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that JD has a Forward P/E ratio of 50.07 right now. This valuation marks a premium compared to its industry’s average Forward P/E of 20.26.