JD.com, Inc. (JD) Gains As Market Dips: What You Should Know

JD.com, Inc. (JD) closed at $93.87 in the latest trading session, marking a +0.55% move from the prior day. This change outpaced the S&P 500's 0.48% loss on the day. At the same time, the Dow lost 1.5%, and the tech-heavy Nasdaq gained 0.56%.

Heading into today, shares of the company had gained 2.13% over the past month, outpacing the Retail-Wholesale sector's loss of 5.28% and the S&P 500's loss of 0.53% in that time.

Wall Street will be looking for positivity from JD as it approaches its next earnings report date. This is expected to be March 11, 2021. The company is expected to report EPS of $0.22, up 175% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $33.05 billion, up 34.8% from the year-ago period.

Any recent changes to analyst estimates for JD should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. JD is currently a Zacks Rank #2 (Buy).

Investors should also note JD's current valuation metrics, including its Forward P/E ratio of 41.56. This represents a discount compared to its industry's average Forward P/E of 51.6.

Also, we should mention that JD has a PEG ratio of 0.81. 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. JD's industry had an average PEG ratio of 2.71 as of yesterday's close.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 20% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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