JD.com stock: buy or sell?
Updated on:
August 22nd, 2019
1
JD.com, Inc., through its subsidiaries, operates as an e-commerce company in the People's Republic of China. The company operates in two segments, JD Mall and New Businesses.
Should I buy JD.com stock?
Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.Currently, JD.com stock doesn't match any of these trading strategies, so our recommendation is not to buy.
| Buy setup | Elegible |
|---|---|
| New all-time high | No |
| New 52 week high | No |
| Price crossing up 200d MA | No |
| 100d MA crossing up 200d MA | No |
Is JD.com stock a buy?
Financial institutions and banks publish stock ratings everyday.
At Stocks2.com, we collected 15 ratings published for JD stock in the last month. The general sentiment of these ratings is bullish for JD stock, with 9 positive ratings.| Date | Analyst / Broker | Previous rating | Current rating |
| 2019-8-5 | Jefferies Financial Group | n/a | Buy |
| 2019-8-19 | Barclays | n/a | Equal Weight |
| 2019-8-14 | Mizuho | n/a | Neutral |
| 2019-8-14 | Credit Suisse Group | n/a | Outperform |
| 2019-8-14 | Citigroup | n/a | Buy |
| 2019-8-14 | Benchmark | n/a | Buy |
| 2019-8-13 | Stifel Nicolaus | n/a | Hold |
| 2019-7-17 | Credit Suisse Group | Outperform | Outperform |
| 2019-4-30 | JPMorgan Chase & Co. | Neutral | Overweight |
| 2019-4-15 | Morgan Stanley | Equal Weight | In-Line |
| 2019-3-1 | CLSA | Underperform | Outperform |
| 2019-3-1 | Benchmark | n/a | Buy |
| 2019-1-31 | UBS Group | Buy | Neutral |
| 2019-1-2 | Credit Suisse Group | n/a | Buy |
| 2019-1-14 | Sanford C. Bernstein | Mkt Perform | Mkt Perform |
JD.com stock analysis
Daily outlook
Shares of JD.com plummed a chilling -4.07% and closed at $29.49.
Shares of JD.com ended today at $29.49 and plummed a chilling -4.07%. On Aug 6th JD price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. Since SMA100d and SMA200d crossed up on May, JD price climbed $1.31 per share (4.65%).
Weekly outlook
After boosting an extraordinary 13.39% in a week last week, JD.com closed this week at $29.49 and collapsed a hair-raising -5.75%.
Late April, SMA20w and SMA40w crossed up triggering a rise of 1.24%. Since mid March when JD stock price broke up the SMA40w line, it gained $2.44 (9.02%).
JD.com stock price history
JD.com IPO was on May 22nd, 2014 at $21.75 per share1. Since then, JD stock surged a 35.60%, with an average of 7.10% per year. If you had invested right after JD's IPO a $1,000 in JD.com stock in 2014, it would worth $356.00 today.
1: Adjusted price after possible price splits or reverse-splits.
JD.com stock historical price chart
JD stock reached 52-week highs at $33.60, and all-time highs 2018-01-29 with a price of 50.68.
JD.com stock price target is $34.80
Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. We have 8 price forecasts for JD stock published in the last month:| Date | Analyst / Broker | Action | Previous target | Current target | Diff |
| 2019-8-19 | Barclays | Initiates | n/a | $36.00 | - |
| 2019-8-14 | Mizuho | Reiterates | $28.00 | $31.00 | 10.7% |
| 2019-8-14 | Citigroup | Reiterates | $41.00 | $43.00 | 4.9% |
| 2019-8-14 | Benchmark | Reiterates | $36.00 | $40.00 | 11.1% |
| 2019-8-13 | Stifel Nicolaus | Reiterates | n/a | $35.00 | - |
| 2019-4-15 | Morgan Stanley | Raises Target | $25.00 | $28.00 | 12% |
| 2019-3-1 | Benchmark | Raises Target | $31.00 | $34.00 | 9.7% |
| 2019-1-2 | Credit Suisse Group | Set Price Target | n/a | $31.00 | - |
| (in average) | $32.20 | $34.80 | 8.0% |
Financials and fundamental analysis
Earnings date and Earnings per Share
JD.com failed experts on February when it published an Earnings per Share (EPS) of $-0.03 when the analysts' forecast was $-0.11.| Quarter | Reporting date | Estimated EPS | Actual EPS | Surprise |
|---|---|---|---|---|
| 2017-Q1 | - | n/a | 0.12 | n/a |
| 2017-Q2 | - | n/a | n/a | n/a |
| 2017-Q3 | 2017-11-13 | 0.11 | 0.24 | 118.2% |
| 2017-Q4 | 2018-03-02 | -0.04 | -0.1 | n/a |
| 2018-Q1 | 2018-05-08 | -0.02 | 0.17 | n/a |
| 2018-Q2 | 2018-08-16 | -0.02 | -0.23 | n/a |
| 2018-Q3 | 2018-11-19 | 0.08 | 0.02 | -75.0% |
| 2018-Q4 | 2019-02-28 | -0.11 | -0.03 | n/a |
| 2019-Q1 | - | n/a | n/a | n/a |
| 2019-Q2 | - | n/a | n/a | n/a |
Annual financial results
In 2018, JD.com annual revenues boosted a dazzling 27.51% to $462,020.00 million dollars from $362,332.00 marked in 2017. In contrast, its earnings margin (compared to revenues) remained constant to -0.54%, that is $-2,491.63 million.| Year | Sales | YoY | Income/(margin) | YoY |
|---|---|---|---|---|
| 2013 | $11,290 M | - | $-8.13 M-0.1% | - |
| 2014 | $115,002 M | 918.62% | $-4,996.36 M-4.3% | 61,355.84% |
| 2015 | $181,042 M | 57.43% | $-9,107.94 M-5.0% | 82.29% |
| 2016 | $260,122 M | 43.68% | $-3,806.79 M-1.5% | -58.20% |
| 2017 | $362,332 M | 39.29% | $-152.26 M-0.0% | -96.00% |
| 2018 | $462,020 M | 27.51% | $-2,491.63 M-0.5% | 1,536.46% |
Quarterly financial results
JD.com posted $134,833.00 M in revenues for 2018-Q4, a 28.70% up compared to previous quarter. Reported quarter income marked $-4,804.73 million with a profit margin of -3.56%. Profit margin eased a -6.43% compared to previous quarter when profit margin was 2.86%. When comparing revenues to same quarter last year, JD.com sales marked an exceptional increase and climbed a 22.39%.| Quarter | Sales1 | QoQ2 | Income1/(margin) | QoQ2 |
|---|---|---|---|---|
| 2017-Q1 | $11,070 M | - | $34.71 M0.3% | - |
| 2017-Q2 | $13,580 M | 22.67% | $-41.83 M-0.3% | -220.51% |
| 2017-Q3 | $12,587 M | -7.32% | $152.44 M1.2% | -464.43% |
| 2017-Q4 | $110,165 M | 775.26% | $-909.23 M-0.8% | -696.44% |
| 2018-Q1 | $100,128 M | -9.11% | $1,524.94 M1.5% | -267.72% |
| 2018-Q2 | $122,291 M | 22.13% | $-2,212.47 M-1.8% | -245.09% |
| 2018-Q3 | $104,768 M | -14.33% | $3,000.62 M2.9% | -235.62% |
| 2018-Q4 | $134,833 M | 28.70% | $-4,804.73 M-3.6% | -260.12% |
JD.com ownership
When you are planning to buy shares of a company, it's worth to have a look its ownership structure.Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For JD.com, 2.11% of all outstanding shares are owned by its staff.
In case of JD.com stock, 50.29% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for JD stock account 0.00%, no big difference from last month.
The following table compares ownership indicators for other stocks related to JD.com:
| JD | BABA | JMEI | LEJU | LITB | |
|---|---|---|---|---|---|
| Market cap | $42.8 B | $455.6 B | $293.8 M | $228.1 M | $98.3 M |
| Total shares | 1,450.0 M | 2,600.0 M | 149.9 M | 135.8 M | 67.8 M |
| Float shares | 806.6 M | 1,500.0 M | 65.8 M | 18.1 M | 13.9 M |
| - Institutional holdings (%) | 50.3% | 42.1% | 9.2% | 1.1% | 13.9% |
| - Insider holdings (%) | 2.1% | 48.5% | 0.9% | 1.7% | 15.8% |
| Shares in short selling | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
JD.com summary
| Thursday, August 22nd, 2019 | |
|---|---|
| Open | $30.57 |
| Close | $29.49 |
| Day range | $29.21 - $30.71 |
| Previous close | $30.74 |
| Session gain | -4.07% |
| Average true range | $1.30 |
| 50d mov avg | $29.81 |
| 100d mov avg | $29.26 |
| 200d mov avg | $26.63 |
| Daily pattern | |
| Weekly pattern | |
JD.com performance
To measure stock performance is always good to benchmark with competitors or related stocks. We selected Alibaba, Jumei International, Leju, LightInTheBox and Vipshop as the bechmarking frame for JD.com stock.| Stock | 3m | 6m | 12m |
|---|---|---|---|
| JDJD.com | 12.04% | 13.64% | -6.08% |
| BABAAlibaba | 13.06% | -0.95% | 0.58% |
| JMEIJumei Internation... | -14.78% | -26.04% | 19.51% |
| LEJULeju | 1.82% | 0.00% | 7.01% |
| LITBLightInTheBox | -3.97% | 104.23% | -13.69% |
| VIPSVipshop | 10.59% | 27.41% | 22.97% |
JD.com competitors
One check before trading any stock is to have a look a list of its competitors, in this case for JD.com. We selected 5 companies as JD.com competitors as they are in the same industry or have similar market objectives.Latest JD.com stock news
- InvestorPlaceThere’s Still a Lot to Like About JD.com StockAugust 2, 2019
- InvestorPlaceJD.com Has the Potential to Unseat Alibaba as ‘The Amazon of China’August 1, 2019
- InvestorPlaceThere Are Good Reasons to Jump Into JD.com StockJuly 23, 2019
- Seeking AlphaJD.com: Back On TrackJuly 9, 2019
- Seeking AlphaJD.Com's Stock Nears A Big Break OutJuly 5, 2019