Why JD.com, Inc. (JD) Dipped More Than Broader Market Today

Core Viewpoint - JD.com, Inc. is experiencing a decline in stock performance, with a significant loss over the past month, while upcoming earnings are anticipated to show growth in EPS and revenue [1][2]. Group 1: Stock Performance - JD.com, Inc. closed at $25.84, reflecting a -1.6% change from the previous day, underperforming compared to the S&P 500's loss of 0.41% [1]. - Over the past month, JD.com shares have decreased by 13.08%, contrasting with the Retail-Wholesale sector's gain of 2.65% and the S&P 500's gain of 3.53% [1]. Group 2: Earnings Estimates - The upcoming earnings disclosure is expected to report an EPS of$ 0.81, which is a 9.46% increase year-over-year [1]. - The consensus estimate for quarterly revenue is projected at $42.2 billion, representing a 6.27% increase from the same period last year [1]. Group 3: Full-Year Estimates - For the full year, Zacks Consensus Estimates predict earnings of$ 3.33 per share and revenue of $160.49 billion, indicating year-over-year changes of +6.73% and +5.49%, respectively [2]. Group 4: Analyst Sentiment - Recent changes in analyst estimates for JD.com reflect optimism regarding the company's business and profitability, with positive revisions correlating with potential stock price performance [2]. - JD.com currently holds a Zacks Rank of 1 (Strong Buy), indicating strong analyst support [3]. Group 5: Valuation Metrics - JD.com has a Forward P/E ratio of 7.9, which is significantly lower than the industry average Forward P/E of 21.05, suggesting a valuation discount [3]. - The Internet - Commerce industry, to which JD.com belongs, has a Zacks Industry Rank of 75, placing it in the top 30% of over 250 industries [3].