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Alibaba (BABA) closed the most recent trading day at $131.57, moving +0.15% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.08%. Elsewhere, the Dow lost 0.56%, while the tech-heavy Nasdaq lost 4.81%.
Heading into today, shares of the online retailer had gained 7.76% over the past month, outpacing the Retail-Wholesale sector's loss of 4.47% and the S&P 500's gain of 0.64% in that time.
Investors will be hoping for strength from Alibaba as it approaches its next earnings release. The company is expected to report EPS of $2.55, down 24.56% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $39.08 billion, up 15.33% from the year-ago period.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $8.27 per share and revenue of $134.18 billion. These results would represent year-over-year changes of -16.8% and +25.3%, respectively.
Investors should also note any recent changes to analyst estimates for Alibaba. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Alibaba currently has a Zacks Rank of #5 (Strong Sell).
Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 15.92 right now. This represents a discount compared to its industry's average Forward P/E of 33.49.
It is also worth noting that BABA currently has a PEG ratio of 1.03. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BABA's industry had an average PEG ratio of 1.45 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 182, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
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