JD.com (JD) has benefitted from the strong breakout of Chinese equities in recent weeks as the Chinese authorities have unveiled a major economic stimulus package. JD stock has rocketed higher over the last few weeks and appears to be forming a technical bullish pattern indicating another major bull run may be approaching.

JD.com also boasts a Zacks Rank #1 (Strong Buy) rating, strong earnings growth forecasts and a discounted valuation, making the stock extremely appealing at current levels.

JD.com, also known as Jingdong, is one of China's largest e-commerce companies, specializing in online retail. Founded in 1998 and headquartered in Beijing, it started as a brick-and-mortar store selling electronics but later transitioned to an online platform. JD.com is known for its vast logistics network, which includes warehousing and delivery capabilities, ensuring fast and reliable service across China.

The company offers a wide range of products, including electronics, apparel, and household goods, catering to millions of consumers. JD.com distinguishes itself from competitors like Alibaba by focusing on direct sales and its own inventory, which helps maintain quality control. The company is also heavily involved in technological development, such as artificial intelligence and automation, to improve its logistics and retail services.

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JD Boasts Upward Trending Earnings Revisions

As noted, JD.com enjoys a Zacks Rank #1 (Strong Buy) rating, reflecting upward trending earnings revisions. Analysts have unanimously upgraded earnings estimates across timeframes, with FY24 estimates increasing by 17.1% and FY25 estimates climbing by 14.8%.

Earnings are forecast to grow at 17.6% annually over the next three to five years and the company has been buying back shares aggressively, with plans to repurchase $5 billion worth over the next 36 months.

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Bullish Technical Setup in JD Stock

The technical pattern on JD stock is especially compelling. After breaking out from the massive base several weeks ago, the price has taken a brief rest and built out a bull flag. If the price can trade meaningfully above the $46 level, I would expect another big rally to occur. Alternatively, if it loses the $42 level of support, it may need more time, and investors may want to wait for another opportunity.

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JD Shares Trade at a Fair Valuation

Because the Chinese stock market has been under selling pressure for nearly three years following a collapse in the real estate market and broad economic slowdown, JD along with other leading stocks in the country are trading a deeply discounted valuations.