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Should Value Investors Buy JD.com (JD) Stock?
JDJD(JD) Zacks Investment Research·2024-04-22 14:46

Investment Strategy - Value investing is one of the most preferred ways to find strong stocks in any market, utilizing tried-and-true valuation metrics [1] - Zacks Style Scores system helps identify stocks with specific traits, particularly in the "Value" category, with "A" grades and high Zacks Ranks indicating strong value stocks [1] JDcom Analysis - JDcom (JD) currently holds a Zacks Rank of 1 (Strong Buy) and an A grade for Value, making it a strong candidate for value investors [2] - JDcom's P/S ratio is 026, significantly lower than the industry average of 075, indicating potential undervaluation based on revenue [2] - JDcom's P/CF ratio is 909, compared to the industry average of 1544, suggesting the stock is undervalued based on its solid cash outlook [2] - Over the past year, JDcom's P/CF ratio has ranged from 766 to 1632, with a median of 1026, further supporting its undervaluation [2] Conclusion - JDcom is likely undervalued based on its valuation metrics and strong earnings outlook, making it one of the market's strongest value stocks [3]