JD.com, Inc. (JD) Stock Slides as Market Rises: Facts to Know Before You Trade

In the latest close session, JD.com, Inc. (JD) was down 1.25% at $31.64. This change lagged the S&P 500's 0.32% gain on the day. Meanwhile, the Dow gained 0.53%, and the Nasdaq, a tech-heavy index, added 0.26%.

Shares of the company witnessed a loss of 3.41% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.84%, and the S&P 500's gain of 4.51%.

The investment community will be closely monitoring the performance of JD.com, Inc. in its forthcoming earnings report. In that report, analysts expect JD.com, Inc. to post earnings of $0.5 per share. This would mark a year-over-year decline of 61.24%. Our most recent consensus estimate is calling for quarterly revenue of $47.56 billion, up 18.61% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.48 per share and a revenue of $180.25 billion, signifying shifts of -41.78% and +12.13%, respectively, from the last year.

Any recent changes to analyst estimates for JD.com, Inc. should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 39.49% lower. As of now, JD.com, Inc. holds a Zacks Rank of #5 (Strong Sell).

In terms of valuation, JD.com, Inc. is presently being traded at a Forward P/E ratio of 12.93. This denotes a discount relative to the industry average Forward P/E of 21.64.

We can additionally observe that JD currently boasts a PEG ratio of 3.81. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 1.63 as trading concluded yesterday.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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