Is JD.com (JD) a Solid Growth Stock? 3 Reasons to Think "Yes"
ZACKS·2024-09-09 17:47

Core Viewpoint - Growth stocks, such as JD.com, are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Earnings Growth - JD.com has a historical EPS growth rate of 42.7%, with projected EPS growth of 27.2% for the current year, surpassing the industry average of 21.2% [3] Group 2: Cash Flow Growth - JD.com exhibits a year-over-year cash flow growth of 32.5%, significantly higher than the industry average of -1.8%. The company's annualized cash flow growth rate over the past 3-5 years is 48.3%, compared to the industry average of 7.5% [4] Group 3: Earnings Estimate Revisions - The current-year earnings estimates for JD.com have increased by 18.5% over the past month, indicating a positive trend in earnings estimate revisions [5] Group 4: Overall Positioning - JD.com has achieved a Zacks Rank 1 (Strong Buy) and a Growth Score of A, positioning it well for potential outperformance in the growth stock category [6][7]