#3 - JD.com (NASDAQ:JD)
You can’t have a list of eCommerce stocks without analyzing at least one Chinese stock. China is the largest market for eCommerce and that’s not expected to change. In this case, you may want to consider JD.com, Inc. (NASDAQ: JD).
This is one of the older Chinese companies, but that has its advantages specifically when it comes to revenue. Even as the Chinese economy has struggled in the last four quarters ending in March 2023, JD.com still managed to generate over $150 billion in revenue.
The concern is margin growth. Companies in this sector generally operate on low margins and JD.com is no different. The company’s net margin in the last 12 months is 1.9%.
But there may be some changes coming. In late June, JD.com announced plans to establish an autonomous division that would integrate its 7Fresh supermarket chain with other online services.
That will take time to play out. In the meantime, the company is a stable play at a time when the Chinese economy is struggling and is likely to be one of the best performers as it recovers. Investors can buy JD stock for a reasonable P/E ratio of 19.9x as of June 26, 2023. JD.com analyst ratings on MarketBeat give the stock a 71.5% upside with a consensus price target of $60.17.
About JD.com
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.
Read More - Current Price
- $34.68
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 10 Buy Ratings, 3 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $40.36 (16.4% Upside)
