Core Viewpoint - JD.com, Inc. is undervalued compared to American and European e-commerce retailers, trading at approximately 13% Free Cash Flow yield, but faces corporate governance concerns and Chinese economic uncertainty that weigh on its stock performance [1][21]. Financial Performance - JD reported a 6.6% year-over-year increase in net product revenues for Q1 2024, with general merchandise revenues growing by 8.6% [8][9]. - The company has seen a significant increase in net service revenues, which grew by 8.8% [9]. - JD's total net revenues for Q1 2024 reached RMB 260,049 million, reflecting a 7% increase compared to the previous year [8]. Market Dynamics - The Chinese economy is gradually recovering, with consumer confidence improving from November 2022 lows, which is expected to benefit JD and other consumer discretionary goods retailers [5][12]. - JD's stock has been closely aligned with other Chinese ADRs and has slightly underperformed the broader Chinese stock market [3]. Competitive Landscape - JD faces increasing competition from budget-conscious consumers gravitating towards platforms like Pinduoduo (PDD), which offers lower-priced goods [13][22]. - The competitive pricing of cloud and AI services in China may impact JD's margin growth potential [11][17]. Future Growth Prospects - Future revenue and earnings growth for JD is projected to be around 6-7%, aligning with expected Chinese GDP growth rates [18][19]. - The company has initiated share buybacks worth $1.3 billion, which could enhance EPS growth [19]. Valuation Metrics - JD's forward PE multiple is reported at 8.6X, significantly below its 5-year average of 30X, indicating a potentially attractive valuation [21]. - The stock's low valuation provides a margin of safety for investors, although corporate governance issues remain a concern [1][21].

JD.com stock might be cheap, but it's not for everyone.The last few years have been difficult for Chinese companies, with top companies like Alibaba and Tencent seeing significant drawdowns in their share prices. This contrasts with its U.S. counterparts, which have been reaching new highs. For perspective, the Nasdaq Composite reached a new all-time high in 2024.While most investors shy away from Chinese companies, contrarian investors are excited about Chinese tech companies, thanks to their lower prices. ...

It would be an understatement to say that the last few years have been unimpressive for Chinese stocks. The reasons include regulatory headwinds, geopolitical tensions, and decelerating GDP growth. It however seems that the worst is over for the economy. Further, several Chinese stocks are deeply undervalued and this might be the best time to accumulate.It’s worth noting that China’s GDP growth for the March quarter was better than expected. Expansionary policies are likely to continue and will support grow ...

Loading...Loading...When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about JD.com, Inc. JD.JD.com currently has an average brokerage recommendation of ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about JD.com, Inc. (JD) .JD.com currently has an average brokerage recommendation (ABR) of 1.59, on a ...

There is at least one big reason why this stock is trading at a cheap valuation, but the discount is overdone.Fool.com contributor Parkev Tatevosian reveals one relatively cheap growth stock to consider adding to your portfolio. *Stock prices used were the afternoon prices of June 7, 2024. The video was published on June 9, 2024. ...

Company Overview - JD.com is a Chinese e-commerce giant competing with Alibaba and Pinduoduo, operating in a highly competitive market with a focus on low prices and logistics capabilities [4] - The company has a significant direct-to-consumer segment and controls a large share of China's home appliance and electronics market, while also expanding its technology and supply chain platforms [5] Financial Performance - JD.com's revenue peaked in 2022 but has since slowed down, with macroeconomic and geopolitical factors contributing to this deceleration [4] - Management forecasts improvement in business by 2025, expecting JD.com's revenue growth to outpace China's overall retail sales growth [5] - The stock currently has a price-to-earnings ratio of about 13 and a forward 1-year price-to-earnings ratio of 8, indicating it may be undervalued [6] Investment Activity - Billionaire hedge fund manager David Tepper opened a new position in JD.com, purchasing 3,649,863 shares, betting on a recovery as the stock is down 72% from its 2021 high [3] - The stock has shown signs of recovery since early March, suggesting that investors may be willing to take a chance on it again [6] Market Position and Strategy - JD.com is actively working to generate more business from its technology and supply chain platforms, which is expected to enhance its market reach and improve margins [5] - The company pays a dividend yielding 2.6% at the current share price, adding to its attractiveness for investors [5]

JD.com, Inc. (JD) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this company have returned -9.9% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Internet - Commerce industry, to which JD.com belongs, has gained 3.4% over this period. Now the key question is: Where could the stock be headed in the near term?While media re ...

BEIJING, May 27, 2024 (GLOBE NEWSWIRE) -- JD.com, Inc. ("JD.com" or the "Company") (NASDAQ: JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter)), a leading supply chain-based technology and service provider, today announced that it will hold its annual general meeting of shareholders (the "AGM") at Building A, No. 18 Kechuang 11 Street, Yizhuang Economic and Technological Development Zone, Daxing District, Beijing 101111, People's Republic of China, on June 21, 2024 at 3:00 p.m. (Hong Kong time). No pro ...

It's been a wild ride for this China-based e-commerce giant.JD.com (JD -2.98%) is one of the biggest e-commerce companies in China and, based on direct sales, the biggest retailer in China. The company competes closely with Alibaba, which operates based on a marketplace model, and PDD Holdings, an upstart discount online retailer.While JD.com has grown rapidly throughout most of its history, more recently, the company struggled with intensifying price competition with Alibaba and PDD's Pinduoduo, weak consu ...