Investors are highly afraid of potential market crashes amidst the coronavirus outbreak. With regards to this fear, reliable stocks are needed than ever; among them is JD.com stock.
JD.com (NASDAQ:JD) is the largest direct retailer and a giant e-commerce in China, rivaling Alibaba. However, different from Alibaba, JD owns its own big first-party logistic network.
According to analysts, JD.com has a preferable stock to buy considering its performance during this hard time. In the last quarter, the company’s revenue increased 27% annually, and it further expects at least 10% growth during this quarter.
Regarding the situation, what actually makes JD to possess a promising stock to buy during the expected market crashes? Among them, here are several reasons supporting the expectation.
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Continuity and Sustainability
At times when companies are suffering from suspension due to disturbed supply chain and coordination, JD.com appears to have better sustainability. Accordingly, this is because the company has its own ‘network.’
Unlike its competitors which mostly rely on other parties for warehouse and delivery, JD.com owns it all. Ranging from its logistics network warehouse robots, drones, and driverless delivery vehicles, JD’s expensive tools put them at advantages during the pandemic.
Performance
Indifferent from other companies, JD.com also experiences disturbance during the COVID-19 outbreak. However, considering the difficult situation, the performance of the stock is notably stable.
Zacks Equity Research says that the company is trading at a premium comparatively. In addition, its Zacks Rank also considers JD.com stock to be worth holding for now.
Recommended by Experts
With regards to JD’s stable performance and sustainable potential, experts have been recommending a purchase of its stock. This is so as the company is considered to have high sustainability should the stock markets crash.
The Motley Fool has been listing the company in the top 10 and top 3 stocks to buy when the market crashes, alongside Amazon and Square.
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