Trade-Ideas LLC identified

JD.com

(

JD

) as a pre-market leader 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 $346.5 million.
  • JD traded 18,648 shares today in the pre-market hours as of 8:38 AM.
  • JD is up 2.5% today from yesterday's close.

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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. Currently there are 5 analysts that rate JD.com a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for JD.com has been 12.7 million shares per day over the past 30 days. JD.com has a market cap of $32.1 billion and is part of the technology sector and internet industry. Shares are down 28.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates JD.com as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from the ratings report include:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 42.5%. Since the same quarter one year prior, revenues rose by 38.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • JD's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.74 is somewhat weak and could be cause for future problems.
  • JD.COM INC -ADR has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, JD.COM INC -ADR reported poor results of -$1.06 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings (-$0.03 versus -$1.06).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has significantly decreased by 1494.2% when compared to the same quarter one year ago, falling from -$73.22 million to -$1,167.31 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. 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.

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