Please ensure Javascript is enabled for purposes of website accessibility

Why Finished Higher Today

By Jeremy Bowman - Jan 25, 2021 at 6:52PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

An analyst upgraded the Chinese e-commerce stock.

What happened

Shares of (JD -2.25%) were moving higher today after the Chinese e-commerce company got a bullish note from Bernstein.

The stock finished today's session up 3.7% after gaining as much as 7.1% earlier in the day.

A JD delivery robot on the street.

A JD delivery robot. Source:

So what

Bernstein analyst Robin Zhu initiated coverage this morning on with an outperform rating and a price target of $120, representing 26% upside from the closing price on Jan. 22.

Zhu saw a continuation in the market share shift from offline to online retail, noting that JD and other Chinese internet companies have strong access to capital, large troves of data, and impressive track records of entering new markets, including logistics and telehealth. He said he expects JD to out-compete offline rivals and to see strong growth in most of its key business segments.

Zhu gave a similar endorsement to JD rival Alibaba (BABA -2.10%), but only rated it market perform, showing he sees greater upside to JD.

Now what

After a blowout performance in 2020 that saw the stock jump 150%, the Chinese e-commerce company has gotten off to a strong start in 2021. It seems to have benefited from diminishing fears about a crackdown against Alibaba. The two companies often trade in tandem as they are subject to similar geopolitical risks.

JD will have another opportunity to delight investors in the coming weeks as the Lunar New Year kicks off. Chinese e-commerce tends to spike around holidays like the New Year and Singles' Day in November, so the festivals are opportunities for the companies to show off their growth.

JD's fourth-quarter earnings report is also due out in February. Analysts expect a 39% jump in revenue to $33.9 billion and for earnings per share to rise from $0.08 to $0.22, showing growth stock's margins are rapidly improving.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned, Inc. Stock Quote, Inc.
$51.59 (-2.25%) $-1.19
Alibaba Group Holding Limited Stock Quote
Alibaba Group Holding Limited
$85.85 (-2.10%) $-1.84

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

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.