JD.com (JD) Q3 Earnings Expectations: Stock Target Advisor’s Analysis

JD.com Inc. (JD) is scheduled to report its third-quarter 2024 earnings on November 14. Analysts are anticipating solid growth in the company’s financial performance.

According to the Zacks Consensus Estimate, JD.com is projected to achieve $36.54 billion in revenues, representing a 7.64% increase from the same quarter last year. Earnings per share (EPS) are forecasted at $1.09, marking an 18.48% growth compared to the prior year’s quarter. This upward trend in earnings expectations has been underscored by a recent 5.8% revision in analyst estimates over the past month. JD.com has consistently outperformed earnings estimates in previous quarters, with an average earnings surprise of 24.04% across the last four quarters, indicating the potential for another strong report.

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Stock Target Advisor’s Analysis on JD.com:

According to Stock Target Advisor’s analysis, JD.com Inc. ADR maintains a “Slightly Bullish” rating, supported by seven positive and five negative indicators. As of the most recent close, JD.com’s stock traded at $36.10. Analysts’ target price for the next 12 months averages around $41.88, with several recommending a “Strong Buy” rating on the stock. Key strengths include JD.com’s high market capitalization, attractive valuation metrics such as a lower-than-average price-to-earnings ratio, superior return on equity, and positive cash flows.

JD has also shown a strong five-year earnings growth rate of 1,069.93%, placing it in the top quartile of its sector. However, potential investors should be cautious due to the stock’s high volatility, underperformance in total returns compared to peers over the past five years, and an above-median price in terms of cash flow. Furthermore, despite its high growth potential, JD’s dividend growth has been below average for its sector.

Conclusion:

With JD.com’s Q3 2024 earnings report approaching, the market awaits confirmation of its anticipated revenue and earnings growth. Stock Target Advisor’s slightly bullish outlook aligns with JD’s recent performance, making it an attractive option for growth-oriented investors willing to accept higher volatility.

However, given mixed signals on certain valuation metrics, potential buyers may want to monitor the Q3 results closely and consider a “Hold” approach if volatility is a concern.