JD.com, Inc. (JD) Stock Sinks As Market Gains: Here's Why

JD.com, Inc. (JD) ended the recent trading session at $28.87, demonstrating a -2.37% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.72%. At the same time, the Dow added 0.48%, and the tech-heavy Nasdaq gained 1.16%.

The stock of company has risen by 15.33% in the past month, leading the Retail-Wholesale sector's loss of 4.19% and the S&P 500's loss of 4.99%.

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 $0.34 per share. This would mark a year-over-year decline of 70.69%. Meanwhile, the latest consensus estimate predicts the revenue to be $45.52 billion, indicating a 9.72% increase compared to the same quarter of the previous year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $2.9 per share and revenue of $200.85 billion, which would represent changes of +13.73% and +9.36%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for JD.com, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

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. Within the past 30 days, our consensus EPS projection has moved 7.66% higher. JD.com, Inc. presently features a Zacks Rank of #3 (Hold).

Digging into valuation, JD.com, Inc. currently has a Forward P/E ratio of 10.21. For comparison, its industry has an average Forward P/E of 15.63, which means JD.com, Inc. is trading at a discount to the group.

Meanwhile, JD's PEG ratio is currently 7.46. 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. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 0.91.

The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 177, positioning it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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This article originally published on Zacks Investment Research (zacks.com).

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