JD.com stock underperforms, earnings release anticipated

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JD.com stock underperforms, earnings release anticipated

JD (NASDAQ: JD ).com's stock price dipped 0.35% to $25.33 in the latest market close, trailing the S&P 500, Dow, Nasdaq , and the Retail-Wholesale sector which only shed 0.34%. This marks a continuation of the company's recent downward trajectory, with shares falling 10.68% over the last month, outpacing the S&P 500's loss of 2.21%.

On the horizon is the upcoming earnings release, expected to disclose an EPS of $0.86, representing a year-over-year decrease of 2.27%. The quarterly revenue, however, is projected to show a modest increase of 0.42%, reaching $34.38 billion.

JD.com's full-year earnings are predicted to rise by 13.23% to $2.91 per share, according to consensus estimates. On the other hand, revenue is anticipated to contract by 3.96% to $148.7 billion.

Recent analyst forecast revisions have led to a consensus EPS estimate increase of 5.65%.

InvestingPro Insights

Delving into the details, JD.com's financial health is strong. According to InvestingPro, the company holds more cash than debt on its balance sheet, a notable strength in today's volatile market. Moreover, the company's net income is expected to grow this year, signaling potential upside despite the recent downward trajectory of the stock. An InvestingPro Tip worth noting is that JD.com's valuation implies a strong free cash flow yield, suggesting the company is undervalued.

From a data perspective, JD.com boasts an adjusted market cap of $39.99 billion and a P/E ratio of 18.66 as of Q2 2023. The company's revenue for the last twelve months as of Q2 2023 reached an impressive $147.45 billion, growing by 6.79% over the period. However, the company's gross profit margin remained weak at 8.59%, aligning with an InvestingPro Tip that indicates weak gross profit margins for the firm.

For those seeking a comprehensive suite of investment tips and real-time data, InvestingPro offers a total of 12 additional tips and numerous data metrics for JD.com. This wealth of information can provide investors with a more nuanced understanding of the company's performance and potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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