by winston » Wed Sep 26, 2018 9:33 pm
not vested
JD.com (JD)
I don’t know what to say about JD.com (NASDAQ:JD) other than the stock has been absolutely decimated.
With a 52-week high just over $50 and with the stock now under $25, JD stock is officially down more than 50% from its January highs.
We called out a possible bounce trade or two, but warned investors to keep a tight leash on JD. If the trade didn’t pan out, they needed to bail. We’ve seen this with FedEx (NYSE:FDX), Snap (NYSE:SNAP), General Electric (NYSE:GE) and many others.
Discipline is key when it comes to the stock market. In any regard, when was near $32, I started looking at the low $20s, thinking there’s no way it can get there. Now under $25, perhaps that $22 to $23 area isn’t as crazy as it seemed a few months ago.
The company has a $35 billion valuation and is expected to generate sales of almost $69 billion this year. That is, shares trade at almost 0.5 times this year’s revenue, a pretty cheap valuation for a key e-commerce player in one of the largest e-commerce markets in the world.
Further, estimates call for ~30% sales growth this year and ~25% growth next year. While earnings are set to decline from 50 cents per share last year to just 42 cents per share in 2018, analysts expect that figure to more than double in 2019 to 88 cents a share. That prices JD at a reasonable 27 times forward earnings.
Is JD stock a screaming buy amid an escalating trade way? No, not necessarily. But it should definitely be on the radar near current levels.
Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"