ZACKS·2024-06-10 14:35Group 1: Analyst Recommendations - JD.com currently has an average brokerage recommendation (ABR) of 1.59, indicating a position between Strong Buy and Buy, based on recommendations from 17 brokerage firms, with 12 of those being Strong Buy, representing 70.6% of all recommendations [1][2] - Despite the positive ABR, reliance solely on brokerage recommendations for investment decisions may not be wise, as studies show limited success in guiding investors to stocks with the best price increase potential [2][5] - The vested interests of brokerage firms often lead to a positive bias in their analysts' ratings, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [2][5] Group 2: Zacks Rank Comparison - Zacks Rank categorizes stocks into five groups, from Strong Buy to Strong Sell, and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [3][5] - The ABR and Zacks Rank are different measures; ABR is based on brokerage recommendations and can be outdated, while Zacks Rank is timely and reflects the latest earnings estimates [4][5] - JD.com has a Zacks Consensus Estimate for the current year that has increased by 7.9% over the past month to $3.33, contributing to its Zacks Rank of 1 (Strong Buy) [6]