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Why JD.com's Shares Rose 10.4% Last Month

By Anders Bylund - Nov 9, 2019 at 11:19PM

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The e-commerce titan added a strong shot of analyst-powered gains to a general groundswell in favor of Chinese tickers throughout the month.

What happened

Shares of JD.com (JD -1.16%) gained 10.4% in October 2019, according to data from S&P Global Market Intelligence. The Chinese e-commerce leviathan enjoyed easing trade tensions between Beijing and Washington along with a rosy analyst report.

So what

The improving tenor in trade-talk posturing was a boon to many Chinese stocks last month, including several of JD's closest peers in the e-commerce sector. Group-shopping discounts wrangler Pinduoduo (PDD -2.73%) saw share prices rise 27% while sector-spanning online shopping giant Alibaba (BABA -1.03%) posted a gain of 5.6%, for example. That's one ingredient in JD's solid October gains.

The other half of those price gains came from analyst firm 86Research publishing a strongly positive research report on the stock on Oct. 11. The firm lifted JD from a "hold" to a "buy" while boosting target prices from $35 to $41 per share. The stock was trading near $28 per share before that report and nearly $30 per share later that day.

Three smiling Asian youngsters gathered in a public meeting space, all focusing on their smartphones.

Image source: Getty Images.

Now what

86Research cited greater visibility of long-term margin expansion trends after a recent investor conference. JD's stock also looked cheap because of a 10% price drop over the span of three weeks. Analyst-powered gains continued in early November and JD's stock has now gained a total of 17.8% since the end of September.

All told, the stock has now gained 38% over the last 52 weeks. JD.com offers an intriguing combination of massive scale and rapid growth, and any investor with a serious interest in Chinese stocks should take a closer look at this ticker.

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Stocks Mentioned

JD.com, Inc. Stock Quote
JD.com, Inc.
JD
$52.17 (-1.16%) $0.61
Alibaba Group Holding Limited Stock Quote
Alibaba Group Holding Limited
BABA
$86.79 (-1.03%) $0.90
Pinduoduo Stock Quote
Pinduoduo
PDD
$40.90 (-2.73%) $-1.15

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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