Farzin Azarm of Mizuho Americas says money has been sticking with U.S. tech and artificial intelligence related stocks given their continuous climb; but when these trades unwind, cheaper valuation com… Chinese stocks have bounced higher amid a flurry of signals of government support. Our experts picked 7 Zacks Rank #1 Strong Buy stocks with the best chance to skyrocket within the next days. Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions. Based on our research, we believe these estimate revisions are directly related to near-team stock moves.
Founded on June 18, 1998, by Qiangdong Liu, JD.com started as an online magneto-optical store but quickly diversified its product offerings to include electronics, mobile phones, computers, and other consumer goods. Over the years, the company has become one of China’s largest B2C online retailers by transaction volume and revenue. JD.com operates through various business segments, including JD Retail, JD Logistics, JD Technology, JD Health, and JD Digits. The company’s core business, JD Retail, offers an extensive range of products through its online retail platform, known for its authentic low prices, quality assurance, and customer-centric approach. JD.com (JD -0.83%) posted its fourth-quarter earnings report on March 9.
- Based on our research, we believe these estimate revisions are directly related to near-team stock moves.
- Zacks Ranks stocks can, and often do, change throughout the month.
- The Chinese e-commerce giant’s revenue rose 7% year over year to 295.4 billion yuan ($42.8 billion) and beat analysts’ estimates by $190 million.
- Based on an average daily trading volume, of 13,840,000 shares, the days-to-cover ratio is presently 2.2 days.
- JD also has acquired 8 logistics centers in England from Goldman Sachs.
According to its website, buyers can pick up their orders at nearby pickup points as early as the next day, with no order value threshold. Those headline numbers looked solid, but JD’s stock plunged 11% after the report and remains 60% below its all-time high from February 2021. Let’s see why the bulls retreated — and if JD is a potential turnaround play for 2023. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.
Dividend Strength
These initiatives not only stimulate consumer spending, but also align with broader sustainability goals. Its revenue growth of 19.4% in USD terms for the trailing twelve months [TTM] compares positively to Alibaba’s 1.3% and JD’s flat sales putting it ahead. Further, PDD’s 22.9% margin is not only far ahead of the 14.7% for Alibaba, but almost 10x the 2.5% for JD. However, JD’s first-party marketplace just2trade review takes on its own inventories and operates at much lower margins than Alibaba and Pinduoduo, which don’t take on any inventories for their third-party marketplaces. JD offsets some of that pressure by providing its own logistics services, which were expanded by years of big investments, to external customers. Despite its success, JD.com faces various risks and challenges that investors should consider.
Currently, the New Businesses Segment, which includes Ochama, accounts for about ~2% of total revenue. The further development of its overseas e-commerce, Ochama, could significantly increase revenue in the next 5 years, as evidence shows JD is actively making efforts on Ochama’s expansion in Europe. This can of course prop up the much needed revenue fxchoice account types growth, but price cuts can impact margins, which are already not competitive compared with either Alibaba or PDD. On Saturday, Currys rejected an initial $883 million acquisition offer from Elliott Management, arguing the potential cash offer “significantly undervalued” the company. Currys operates around 300 stores and employs around 10,000 people.
However, the market’s preferred style may vary in different cycles. The growth style has led in outperformance over the past 15 years, but looking forward, the value investing style could potentially outperform the growth style. There are valid reasons for the stock market slump for Chinese companies, and that includes JD.
JD.com’s strong logistics network provides a competitive edge compared to its peers, enabling faster and more reliable deliveries. Its strategic partnerships with leading companies have also expanded its market positioning. In a statement Monday, however, JD.com representatives confirmed they’re also considering whether to make a competitive acquisition offer.
Based on those expectations, JD trades at 22 times forward earnings. Upgrade to MarketBeat All Access to add more stocks to your watchlist. Stockholders of record on Thursday, April 6th will be paid a dividend of $0.62 per share on Thursday, May 4th.
Investing in JD.com is risky.
Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return.
China’s large e-commerce market is growing and JD.com is very well placed in this space. In the long term, the company has all of the makings to become a dominant player in Chinese grocery e-commerce, which accounts for a large part of the overall consumption in China, according to Arisaig Partners. JD.com has an advantage in this space since it has self-managed and fully integrated logistics capabilities. Tencent will pay a special dividend of more than 457 million JD.com shares to its investors. Tencent’s shareholders will receive 1 share of JD.com for every 21 shares of Tencent that they own on Jan. 25, the record date for the transaction.
JD.com to Report Fourth Quarter and Full Year 2023 Financial Results on March 6, 2024
Burry’s Scion Asset Management had the Chinese e-commerce stocks as the top holdings in his fund at the end of 2023. In the latest trading session, JD.com, Inc. (JD Quick QuoteJD – Free Report) closed at $22.62, marking a -0.83% move from the previous day. On the other hand, the Dow registered a gain of 0.12%, and the technology-centric Nasdaq increased by 0.9%. Based on my research on customer feedbacks, customers are generally very satisfied with Ochama’s services, due to the large variety of Asian groceries selections and fast delivery service. For shoppers in the four European countries mentioned above, ordered goods typically arrive in these countries within 3 days. Unlike Temu, which sends orders directly to customers via single packages, JD focuses on building local pickup points to shorten shipping times and cut shipping cost.
With $19 billion in net cash, JD’s enterprise value stands only at 3.6x EV/FCF. Building a large-scale logistics infrastructure can incur significant capital expenditure, and maintaining it can incur significant operating expenses. JD spent over 10 years building this infrastructure, and the cost of rebuilding it today could be even more expensive.
Analysts’ average consensus target price of $102 implies a potential upside of 64 percent. However, most of the current target prices were issued by analysts before the current crackdown started. Many Chinese stocks sold off as China cracked down on its listed companies. While the latest crackdown targeted companies in theeducation sector, most of the other listed Chinese equities felt the pressure as the investment sentiment deteriorated. ARK Invest’s Cathie Wood also sold some of her positions in these names, including JD.com. After the recent sell-off, investors wonder if JD.com will go back up and what its forecast looks like for 2025.
Paramount Global (PARA) to Post Q4 Earnings: What’s in Store?
The Chinese e-commerce giant’s revenue rose 7% year over year to 295.4 billion yuan ($42.8 billion) and beat analysts’ estimates by $190 million. Its adjusted net income grew 64% to 28.2 billion yuan ($4.1 billion), or $0.70 per ADS, and cleared the consensus forecast by $0.20. The segment’s revenue only rose 12% to 5.76 billion yuan ($908 million), but its operating loss widened from td ameritrade forex review 2.28 billion yuan to 2.39 billion yuan ($377 million). If these new businesses continue to bleed red ink as JD Retail’s growth decelerates, the company’s total operating margins could tumble. JD said revenue in the quarter rose 7.6% to $39.7 billion, ahead of expectations at $38.7 billion, with strong growth from the services segment, where revenue was up 30.1% to $7.5 billion.
Though JD representatives cautioned there are no guarantees it will make a formal offer, it seems the market isn’t particularly impressed by JD’s potential shift outside of its core China geography. Currys sells items like fridges, washing machines, computers, and other electronics across Britain, Ireland, Sweden, Norway, Denmark, and Finland. JD.com is a supply chain-based technology and service provider in China. A conference call to discuss these results kicked off at 7 a.m.