JD.com (JD) Stock: Weak On High Volume Today
Trade-Ideas LLC identified
(
) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified JD.com as such a stock due to the following factors:
- JD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $272.4 million.
- JD has traded 1.5 million shares today.
- JD is trading at 2.33 times the normal volume for the stock at this time of day.
- JD is trading at a new low 3.09% below yesterday's close.
'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.
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More details on JD:
JD.com, Inc., through its subsidiaries, operates as an online direct sales company in the People's Republic of China. It primarily offers electronics and home appliances products; and general merchandise products, including audio and video products, and books. JD has a PE ratio of 11. Currently there are 5 analysts that rate JD.com a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for JD.com has been 12.1 million shares per day over the past 30 days. JD.com has a market cap of $39.3 billion and is part of the technology sector and internet industry. Shares are up 21.9% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates JD.com as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
Highlights from the ratings report include:
- JD's very impressive revenue growth exceeded the industry average of 45.5%. Since the same quarter one year prior, revenues leaped by 60.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- JD's debt-to-equity ratio is very low at 0.04 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- Compared to other companies in the Internet & Catalog Retail industry and the overall market, JD.COM INC -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Internet & Catalog Retail industry average, but is greater than that of the S&P 500. The net income increased by 12.3% when compared to the same quarter one year prior, going from -$93.90 million to -$82.33 million.
- The gross profit margin for JD.COM INC -ADR is currently extremely low, coming in at 6.36%. Regardless of JD's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.11% trails the industry average.
- You can view the full JD.com Ratings Report.
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