(VIANEWS) – JD.com Inc. (NASDAQ: JD) saw its shares experience a dramatic 28.03% upswing over the past 10 trading sessions, rising from EUR21.44 to EUR27.45; an uptick that followed an overall downward trend from previous session. Meanwhile, NASDAQ is currently down 0.96% at EUR15,973.17 – marking two consecutive sessions of losses; JD’s last closing price at EUR27.05.05 represented a 40.1% decrease from its 52-week high of EUR45.16
About JD.com
JD.com Inc, China’s premier e-commerce platform, offers an impressive array of products and services including supply chain technologies, marketplace services, marketing services and omni-channel solutions. JD provides electronics, home appliances, furniture, cosmetics, pharmaceuticals as well as online healthcare services, logistics facilities management asset management services real estate properties for sale as part of their offerings. JD was established in Beijing back in 2006 with its headquarters based there as well.
Yearly Analysis
Based on the provided data, here is the investment outlook for JD.com:
Yearly Top and Bottom Value
At EUR27.45, the current stock price is significantly below its 52-week high of EUR45.16 and indicates a decrease in value over the past year. Yet it remains above its 52-week low of EUR20.82 suggesting some recovery.
JD.com anticipates annual sales growth of 6.6% this year and 6.4% for 2019. However, its expected expansion of its logistics network, technological investments, and product offerings should drive this modest expansion.
Earnings Before Interest, Taxes, Depreciation, and Amortization
JD.com has reported an EBITDA score of 2.09 which indicates it is generating positive cash flow from its operations – an encouraging sign for its financial health and suggests they could potentially reinvest it back into their business to spur future expansion.
JD.com may not boast as high of an expected growth rate as other tech companies, but its positive cash flow and continued investments suggest long-term potential for expansion. Before making any decisions or investing any funds in any way, however, thorough research should always be performed and consideration given to all relevant factors before taking the leap.
Technical Analysis
JD.com stock has experienced an ongoing downward trend, currently trading below its 200-day moving average of EUR29.90 but significantly above its 50-day moving average of EUR23.95. This could indicate that JD.com stock is experiencing a short-term correction after experiencing strong growth over the past period. With last reported volume being 17,519,173, this could indicate it has seen above its average volume of 15,714,500 and thus be undergoing a short-term correction. The stochastic oscillator, a popular technical indicator, classifies JD.com stock as oversold with an oscillator reading below 20, suggesting it may experience an upward swing soon. Investors should keep in mind that stock prices can be affected by many variables and therefore perform additional research before making investment decisions.
Quarter Analysis
Sales GrowthJD.com currently holds sales growth at 6.6% for this quarter and 10.9% projected for next. Growth Estimates QuartersJD.com has growth estimates that are negative 1.5% for the current quarter while their estimated positive 1.3% estimates for next. Recurring Revenue GrowthOver the past 12 months, JD.com experienced year-on-year quarterly revenue growth at 3.6% with current revenues standing at $1.08T.
Equity Analysis
JD.com appears to be an economic contender with an adequate dividend yield and reasonable valuation, an estimated forward annual dividend yield of 3.07% not being particularly high nor too low.
JD.com boasts an attractive trailing twelve months EPS figure of EUR2.12, an excellent return. Furthermore, its PE ratio of 12.95 indicates that JD.com does not overprice its earnings relative to its market cap.
JD.com’s return on equity of 8.15% for the twelve trailing months is an encouraging sign, signalling that they are making substantial profits relative to shareholder equity.
Overall, JD.com appears to be a stable company with sound financials that could make an attractive investment opportunity for those seeking moderate returns. Before making your final decision though, it’s wise to conduct further research and assess both personal goals and risk tolerance before taking the plunge.
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