Chinese e-tailer JD.com (JD) is set to announce its Q4 2024 results on March 6. The stock has surged more than 89% over the past year, driven by cost savings, improving consumer sentiment, and operational efficiency. Wall Street analysts expect the company to report earnings of $0.85 per share, representing a 17% increase year-over-year.
Meanwhile, revenues are expected to grow by 7% from the year-ago quarter to $45.4 billion, according to data from the TipRanks Forecast page. Interestingly, JD has an encouraging earnings surprise history. The company exceeded earnings estimates in all the previous nine quarters.
Analysts’ Views on JD Ahead of Q4 Results
Ahead of JD’s Q4 results, analyst Gregory Zhao of Barclays maintained a Buy rating on the stock with a price target of $55 per share. The price target implies an impressive 37% upside potential from current levels. Zhao anticipates that JD will achieve about 10% year-over-year revenue growth in Q4, driven by robust profit margins. He believes China’s economic stimulus measures will be a key driver of growth through 2025, positioning JD for big gains.
Similarly, Bank of America analyst Joyce Ju also maintained a Buy rating on JD.com with a $48 price target. Ju expects strong Q4 2024 results, fueled by government subsidies. She projects 10.1% year-over-year revenue growth, driven by trade-in programs and Singles Day sales.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting a 10.01% move in either direction.
Is JD.com Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on JD stock based on eight Buys and one Hold recommendation assigned in the past three months, as indicated by the graphic below. The average JD stock price target is $50.13, implying an upside potential of 24.58%.
