Today's Dead Cat Bounce Stock Is JD.com (JD)
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) 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 $348.3 million.
- JD has traded 981,183 shares today.
- JD is up 3.2% today.
- JD was down 7.1% yesterday.
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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 1. 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 12.2 million shares per day over the past 30 days. JD.com has a market cap of $38.1 billion and is part of the technology sector and internet industry. Shares are up 24.4% year-to-date as of the close of trading on Thursday.
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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 growth in earnings per share. 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 38.2%. 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.
- After a year of stock price fluctuations, the net result is that JD's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- 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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