Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 3 Jul, 24 | JD | Buy | USD 26.68 | USD 28.81 | USD 31.48 | 1 day | 18.0% |
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.
Increased Net margins: 2.80% in Q1FY24 vs. 2.60% in Q1FY23
Increased Return on Equity: 3.10% in Q1FY24 vs. 2.90% in Q1FY23
Decreased Current Ratio: 1.15x in Q1FY24 vs. 1.36x in Q1FY23
Increased operating expenses: USD 252,357 in Q1FY24 vs. USD 236,508 in Q1FY23
Market Competition, Technology Risk, Supply chain disruptions, Operational challenges, Regulatory Risk etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 26.68 | 21.88 | 28.81 | 31.48 |
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.
Financial: JD.com reported an annual 7.0% increase in net revenue to USD 36 billion in Q1FY24 primarily driven by increased product and services revenue.
Technicals: 14-day period RSI stands at a value of 36.34, currently recovering from oversold zone, also stock prices is trading below both the 50-day period SMA and 200-day period EMA.
Outlook: JD.com remains committed to creating ongoing value for its stakeholders across all aspects of its operations.
Given the aforementioned factors, a 'Buy' recommendation has been assigned on the stock at the current market price of USD 26.68 as on July 03, 2024.
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”).
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 July 03, 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: The report publishing date is as per the Pacific Time Zone.
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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