Benzinga·2024-06-10 19:41Core Viewpoint - JD.com, Inc. has an average brokerage recommendation (ABR) of 1.59, indicating a consensus between Strong Buy and Buy, based on 17 brokerage firms' recommendations [1] Brokerage Recommendation Trends for JD - 12 out of 17 recommendations for JD.com are Strong Buy, accounting for 70.6% of all recommendations [1] - Brokerage firms tend to show a strong positive bias in their ratings, with a ratio of five Strong Buy recommendations for every Strong Sell [2] - This bias suggests that brokerage recommendations may not always align with retail investors' interests [2] Zacks Rank and Its Importance - Zacks Rank categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which correlate strongly with near-term stock price movements [3][5] - The ABR is calculated from brokerage recommendations and is displayed with decimals, while Zacks Rank is a quantitative model shown in whole numbers [4] - The Zacks Rank is more timely and reflects changes in earnings estimates quickly, unlike the ABR which may not be up-to-date [5] JD's Investment Potential - The Zacks Consensus Estimate for JD.com has increased by 7.9% over the past month to $3.33, indicating growing optimism among analysts regarding the company's earnings prospects [6] - The increase in consensus estimate, along with other factors, has led to a Zacks Rank of 1 (Strong Buy) for JD.com, suggesting a potential for stock price appreciation [6] - The Buy-equivalent ABR for JD.com can serve as a useful guide for investors [6]