JD.com: What’s Your Competitive Advantage?

  • JD.com had a productive year so far, but their performance is still average in their competitive industry.
  • A global company with such potential should have higher revenue.
  • Is JD a quality long-term investment for you?

JD (JD.com Inc., $33.16) is China’s second largest e-commerce retail website and as affordable, the stock price is, many investors are anxious for better financial results.

Fast Analysis

JD has a history of low GPM (gross profit margins) ranging from 11% to 14% from 2014 to 2017. Leading corporations that have a higher competitive advantage may have a percentage that lies in 20% or above such as BABA (Alibaba Group Holdings) at 57% and AMZN (Amazon.com Inc.) at 23%.

Investors are also mindful of JD’s earnings history. Limited or erratic growth in earnings may be a sign of the company’s poor management of supply- also known as “boom and bust”.

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Though investors do not solely use GPM’s or earnings as a sole deal-breaker for investing, a company that shows consistent growth in these areas is a positive sign of long-term durability.

Read: Honda VS. Toyota- Which Stock Is The Better Buy?

Recent Acquisitions, Mergers & Investments

JD had a busy summer with the large partnership made with GOOGL (Google/Alphabet) and acquisition of a large european fashion brand, Finish Line.

JD also partnered with L. Catterton Asia for a convertible note investment of $175 million in SECO (Secoo Holding Limited), one of the world’s leading online luxury brand. This joint venture was made to further expand revenue and audience in the online retail market.

Related: Alibaba Group Holdings Ltd: The International Powerhouse

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On the other hand, analysts such as Zack’s are currently listing JD as a “strong sell” due to the low annualized return rate below 5%.

Should investors wait until the trade dispute subsides between Asia and the United States? JD is taking immediate action through the right investments to broaden their audience.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attainted:

Nasdaq.com, Zacks.com, Msn.com/Money, CNBC.com

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Top 3 Retail Stocks For Your Watchlist

Don’t miss out on these companies, you may regret it later.

If you’re looking for a high performing retail company, check out these three companies and see if they have a place in your watchlist


Kohl’s Corporation

KSS (Kohl’s Corporation,$82.22) has made reasonable gains this year. With a history of consistent dividends now at $0.61 cents, many investors claim they stock is currently “expensive” and should be bought near its 52-week low of $37.97 from a price above $70.00. However, KSS beat recent 2Q ’18 earnings at $0.64 from expected earnings of $0.50. Some of the companies leading brands are Sonoma, Craft & Barrow, and APT. 9 consists of a net worth of over $19 billion. KSS has great potential to end the year strong.

Five Below Inc.

Five (Five Below Inc.,$114.64), a retail company originally aimed towards kids and teens, has opened over 30 new stores this year and ended their first quarter with a total of 658 stores in 32 states. As said in their recent annual report,

As we continue to pursue our growth strategy, we expect that a significant percentage of our net sales will continue to come from new stores not included in comparable sales. Accordingly, comparable sales is oarey one measure we use to assess the success of our growth strategy.

Though FIVE doesn’t have a dividend, investors like the stock for its consistent growth and stability it’s maintained throughout the years.

Fast Analysis: General Electric (GE): The More Cash The Better

Callaway Golf Company

ELY (Callaway Golf Company,$22.65) made a bold acquisition last year in 2017 of a well-known golf brand Travis Matthew for $125.5 million. Though some investors aren’t pleased with their low dividends, others are impressed with their operating cash flow operating cash flow that increased by 51.46% in 2017. Analysts currently consider ELY currently as a Buy.

Please see About Me & Disclaimer for additional information about Black Tea.

Information Attainted:

SEC.gov ,MSN.com/Money, Wikipedia.com,MarketWatch.com