JD.com Inc Cl A Ads
JD.com Inc Cl A Ads
JD
$7.66
8.87%
171%IBD Stock Analysis
- Shares moved above buy point of 92.87 out of a consolidation on Tuesday
- Stock moved above its 50-day moving average along with its 10-week line
- Company reported that it beat on third-quarter earnings and met on sales
Industry Group Ranking
Emerging Pattern
Consolidation
* Not real-time data. All data shown was captured at
1:56PM EST on
01/05/2021.
JD.com (JD) is the IBD Stock Of The Day, as the China e-commerce company jumped into a buy zone Tuesday on a good day overall for China stocks. JD stock hit a record high.
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The jump in JD stock comes as the New York Stock Exchange early Tuesday reversed course, saying it will now not delist shares of China’s big three state-owned telecommunications operators. That decision also appeared to boost other China stocks Tuesday, including Pinduoduo (PDD), Alibaba (BABA) and Tencent Holdings (TCEHY).
JD stock jumped 10%, near 95, during afternoon action on the stock market today. Shares moved above a buy point of 92.87 out of a consolidation, jumping above its 50-day moving average as well as the 10-week line — both being positive indicators.
Pinduoduo also hit a new high, leaping 10.6%, near 184.60, while Alibaba climbed 5%, near 239.30. Tencent rose 4.6%, near 76.20.
The NYSE, in a brief statement announcing its reversal, said it changed course after “further consultation with relevant regulatory authorities.” The move to delist was initially prompted by an executive order from President Donald Trump.
JD Stock: Offering A Vast Selection
JD.com has a multitude of business units and offers a vast selection of products across every major category. This includes electronics, apparel, home furnishings and appliances. It also sells fresh produce and other groceries. In addition, it’s also transforming to become a leading supply-chain-based technology and service provider.
Further, it holds strategic partnerships with Walmart (WMT), Google-parent Alphabet (GOOGL) and Tencent, among others. JD competes primarily with Alibaba in the e-commerce space, followed by Pinduoduo.
Also on Tuesday, JD stock was upgraded to buy from hold as Stifel analyst Scott Devitt said the company faces a “multifaceted growth opportunity” in the years ahead.
“JD has the opportunity to monetize investment stakes in newer businesses, which should be additive to the company’s equity value as valuation events occur,” Devitt wrote in a note to clients.
Trends Supporting Healthy Long-Term Growth
In addition, he said JD.com has a number of “secular growth trends to support healthy long-term growth and ongoing margin expansion.” Devitt raised his price target on JD stock to 150, up from 84.
JD.com reported third-quarter results on Nov. 16 that beat on the bottom line and met on sales. It reported adjusted earnings of 50 cents a share, vs. Wall Street expectations of 41 cents. Revenue climbed 29% to $25.66 billion, matching estimates.
The company has achieved double-digit revenue growth every quarter going back several years and has been consistently profitable.
In addition, annual active customer accounts grew 32% for the 12-month period to 441.6 million.
Best Possible IBD Composite Rating
The IBD Stock Checkup Tool shows that JD stock has a perfect IBD Composite Rating of 99. The rating means JD.com stock currently outperforms 99% of all stocks in terms of the most important fundamental and technical stock-picking criteria.
The stock also has a Relative Strength Rating of 86. The rating tracks market leadership by showing how a stock’s price movement over the past 52 weeks measures up against that of other stocks.
The stock’s relative strength line also approached a record high. The relative strength line compares the stock’s daily price performance with that of the S&P 500. An upward-sloping RS line means the stock is outperforming the S&P 500. A downward-sloping line means the stock is lagging the S&P 500.
Also, JD.com sports a healthy EPS Rating of 97, which compares quarterly and annual earnings-per-share growth with all other stocks.
If you want to invest in a large-cap stock, a comprehensive selection of articles is here. The IBD Big Cap 20 index offers a selection of the very best large-cap stocks. And be sure to read IBD’s after-the-close The Big Picture column each day to make sure growth investors have a green light. Also, check out IBD Stock Lists and other IBD content to find dozens more of the best stocks to buy or watch.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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