From Nasdaq: 2025-06-12 13:03:00

JD.com shares have fallen 18.5% in the last three months, underperforming industry growth. Margins are eroding, with operating margin at 3.9% in Q1 2025. JD faces intense competition from Alibaba and PDD Holdings, impacting profitability. Earnings estimates show a downward trend, with a 16.9% revision.

JD.com’s valuation is low at a forward P/E ratio of 8.08X, below industry average. Despite this, stock performance and business fundamentals raise concerns. Aggressive expansion strategies have yet to yield returns, while competition intensifies. Earnings estimates are revised downward, prompting investors to consider booking profits.

JD.com currently carries a Zacks Rank #4 (Sell). The company’s challenges include margin pressure, rising costs, and intense competition. With no clear catalysts for a turnaround, investors may be better off reassessing their positions. Five stocks set to double in 2024 were recommended by Zacks experts, offering potential growth opportunities.



Read more at Nasdaq: JD.com Underperforms Industry in 3 Months: Should You Book Profits?