Recommendation: Buy
Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
---|---|---|---|---|---|---|---|
6 Dec, 24 | JD | Buy | USD 36.41 | USD 39.0 | USD 41.4 | 3 days | 13.7% |
Data Powered by EOD Historical Data (“EODHD”).
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.
Share Repurchase: The company repurchased 8.1% of its shares for US$3.6 billion in 2024 and launched a new US$5.0 billion buyback program.
Revenue and Profit Growth: JD.com’s net revenues rose 5.1% year-over-year to RMB260.4 billion (US$137.1 billion), and net income increased by 47.8% to RMB11.7 billion (US$1.7 billion)
Higher Expenses: Marketing expenses rose by 25.7% to RMB10.0 billion (US$1.4 billion), and fulfillment costs increased by 6.9% to RMB16.3 billion (US$2.3 billion)
Decline in Cash Flow: Operating cash flow fell to RMB6.2 billion (US$0.9 billion) in Q3 2024 due to changes in payment schedules and inventory purchases.
JD.com faces risks related to fluctuating cash flow, increased operational costs, and potential market volatility due to its heavy investment in marketing, fulfillment, and share repurchase programs.
Entry Price | Support* | Target 1 | Target 2 |
---|---|---|---|
36.41 | 32.77 | 39.0 | 41.4 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
Price Action Analysis (on the daily chart)
The share price of JD is trading close to important support levels, indicating the possibility of short-term gains. As the stock progresses upward, it is expected to face a significant resistance level at USD 42.04, which could be approached in the near term, likely within the next 2-4 weeks. If the stock successfully breaches this level, it could lead to further buying momentum and potentially extended gains in the stock.
Technical Indicators Analysis (On the daily chart)
On the daily chart, the 14-period Relative Strength Index (RSI) is moving above the midpoint, indicating a positive bias. Furthermore, the stock price moving above its 21-day Simple Moving Average (SMA), supporting positive bias.
As per the above-mentioned price action and technical indicators analysis, JD. Com Inc (NASDAQ: JD) is looking technically well-placed on the chart, and a ‘Buy’ recommendation has been given on the stock. Investment decision should be made depending on an individual’s appetite for upside potential, risks, and any previous holdings. This recommendation is purely based on technical analysis, and fundamental analysis has not been considered in this report. The summary of recommendation is as follows:
Data Powered by EOD Historical Data (“EODHD”).
Sector: Consumer Cyclical Industry: Internet Retail
Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
---|---|---|---|---|---|---|---|---|
JD JD.com Inc Adr |
-0.24 0.66% | 36.20 | 13.57 | 8.00 | 0.04 | 1.24 | 0.02 | 0.70 |
AMZN Amazon.com Inc |
4.18 1.90% | 224.70 | 50.46 | 44.05 | 3.37 | 9.59 | 3.45 | 22.21 |
BABAF Alibaba Group Holding Ltd |
-1.78 14.83% | 10.22 | 19.26 | 8.76 | 1.58 | 1.54 | 1.36 | 8.84 |
PDD PDD Holdings Inc. |
-0.68 0.67% | 100.67 | 20.54 | 13.26 | 0.62 | 5.93 | 0.50 | 1.74 |
BABA Alibaba Group Holding Ltd |
-0.495 0.58% | 84.50 | 10.59 | 7.29 | 0.21 | 1.28 | 0.14 | 0.91 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from a high-risk perspective and recommendations are provided for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 05, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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