JD.com: Why I See Significant Upside Potential

Kevin George
3.99K Followers
(7min)

Summary

  • JD.com stock is significantly undervalued, trading at a forward price/sales ratio of 0.38x, suggesting strong upside potential compared to its U.S. rivals.
  • Despite China's economic slowdown, JD.com has strong financials, with $158.76 billion in annual revenue and impressive net income growth.
  • The company has seen double-digit gains in retail and logistics in Q4, with increasing user growth and shopping frequency, boosting margins.
  • JD.com is rated a Strong Buy by Wall St. analysts and Seeking Alpha Quant ratings, with potential upside from a domestic retail rebound.

Beautiful smiling young Asian woman grocery shopping online with mobile app device on smartphone and making online payment with her credit card, with a box of colourful and fresh organic groceries on the kitchen counter at home

AsiaVision

I recently added JD.com, Inc. (NASDAQ:JD) to my portfolio in a larger-than-normal exposure as I see it as being significantly undervalued.

Introduction to JD.com

JD.com was founded 26 years ago by Liu Qiangdong and has its headquarters in

This article was written by

3.99K Followers
I am an active trader in stocks, FX, crypto, and commodities with over 15 years of market experience. I hold a master's degree in finance and mix microeconomic studies of company financials with a big-picture macroeconomic view.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of JD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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