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Alibaba (BABA) Stock Moves -0.05%: What You Should Know

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In the latest trading session, Alibaba (BABA) closed at $109.84, marking a -0.05% move from the previous day. This change was narrower than the S&P 500's 2.91% loss on the day. At the same time, the Dow lost 2.73%, and the tech-heavy Nasdaq lost 0.25%.

Heading into today, shares of the online retailer had gained 35.53% over the past month, outpacing the Retail-Wholesale sector's loss of 25.08% and the S&P 500's gain of 0.84% in that time.

Investors will be hoping for strength from Alibaba as it approaches its next earnings release. In that report, analysts expect Alibaba to post earnings of $1.70 per share. This would mark a year-over-year decline of 33.85%. Our most recent consensus estimate is calling for quarterly revenue of $31.38 billion, down 1.53% from the year-ago period.

BABA's full-year Zacks Consensus Estimates are calling for earnings of $7.24 per share and revenue of $139.02 billion. These results would represent year-over-year changes of -12.88% and +4.32%, respectively.

Investors might also notice recent changes to analyst estimates for Alibaba. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.61% lower. Alibaba is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 15.18. For comparison, its industry has an average Forward P/E of 25.24, which means Alibaba is trading at a discount to the group.

It is also worth noting that BABA currently has a PEG ratio of 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.33 based on yesterday's closing prices.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% 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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