Summary
- JD.com, a Chinese Internet retailer, has shown strong technical buy signals, with a 55.85% increase since the Trend Seeker buy signal on 9/19.
- The company offers a wide range of products and services, including online marketplace services, logistics, and technology-driven supply chain solutions.
- Barchart's technical indicators show 88% buy signals, a 56.62% gain in the last year, and a 68.63% rise in the last month.
- Wall Street analysts are bullish with 26 strong buy ratings, predicting revenue and earnings growth driven by JD's robust supply chain and logistics capabilities.
The Chart of the Day belongs to the Chinese Internet retailer JD.com @JD. I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 9/19 the stock is up 55.85%.
JD.com, Inc. operates as a supply chain-based technology and service provider in the People's Republic of China. The company offers computers, communication, and consumer electronics products, as well as home appliances; and general merchandise products comprising food, beverage and fresh produce, baby and maternity products, furniture and household goods, cosmetics and other personal care items, pharmaceutical and healthcare products, industrial products, books, automobile accessories, apparel and footwear, bags, and jewelry. It also provides online marketplace services for third-party merchants; marketing services; and omni-channel solutions to customers and offline retailers, as well as online healthcare services. In addition, the company develops, owns, and manages its logistics facilities and other real estate properties to support third parties; offers asset management services and integrated service platform; leasing of storage facilities and related management services; and engages in online retail business. Further, it provides integrated data, technology, business, and user management industry solutions to support the digitization of enterprises and institutions; and technology-driven supply chain solutions and logistics services. The company was formerly known as 360buy Jingdong Inc. and changed its name to JD.com, Inc. in January 2014. JD.com, Inc. was incorporated in 2006 and is headquartered in Beijing, the People's Republic of China.
Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.
Barchart Technical Indicators:
- 88% technical buy signals
- 54.21+ Weighted Alpha
- 56.62% gain in the last year
- .41 - 60 month Beta
- Trend Seeker buy signal
- Above its 20, 50 and 100 day moving averages
- 12 new highs and up 68.63% in the last month
- Relative Strength Index 89.34%
- Technical support level at $40.72
- Recently traded at $44.02 with 50 day moving average of $28.34
Fundamental Factors:
- Market Cap $67.71 billion
- P/E 11.49
- Dividend yield 1.72%
- Wall Street analysts predict revenue will grow 6.00% this year and another 5.30% next year
- Earnings are estimated to increase 28.00% this year, an additional 6.30% next year and continue to compound at an annual rate of 3.57% for the next 5 years
Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:
- Wall street analysts issued 26 strong buy, 8 buy and 7 hold opinions on the stock
- Analysts' price targets ate between $28 and $71.50
- CFRAs MarketScope rates the stock a 4 star strong buy and comments:" We see decent revenue/earnings growth prospects for JD, driven by increasing consumers’ preference for shopping online and value-for-money items, and the strength of its supply chain and logistics capabilities. While we expect JD’s capex and operating expenses (i.e., promotions) to stay high, these will help to strengthen its competitive advantage (e.g., by providing faster delivery or after-delivery services to users) amid strong competition in the e-commerce/on demand delivery space in China."
- MorningStar give the stock its above average rating of 4 with a Fair Value of $50 or 14% under valued and comments:" In the medium term, we expect to see stable margin, after cutting much of its unprofitable businesses such as community group purchase, Jingxi, and international businesses in 2022. JD.com will continue to put more emphasis on high-quality profitability instead of low-quality growth. JD's logistics business JDL became an independent business unit that opens its services to third parties. JDL management will be squarely focused on profitability as well, and has achieved positive non-IFRS net profit in 2022."
- 131,880 investors monitor the stock on Seeking Alpha
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.
On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
