Alibaba (BABA) Stock Moves -0.12%: What You Should Know
Alibaba (BABA) closed at $82.82 in the latest trading session, marking a -0.12% move from the prior day. This change was narrower than the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.68%, and the tech-heavy Nasdaq lost 10.47%.
Prior to today's trading, shares of the online retailer had lost 15.73% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.29% and the S&P 500's gain of 2.61% in that time.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. The company is expected to report EPS of $1.30, up 4% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $30.87 billion, down 4.1% from the prior-year quarter.
Investors might also notice 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.68% higher. Alibaba is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 10.12. Its industry sports an average Forward P/E of 21.5, so we one might conclude that Alibaba is trading at a discount comparatively.
It is also worth noting that BABA currently has a PEG ratio of 0.8. 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. The Internet - Commerce industry currently had an average PEG ratio of 1.17 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 80, which puts it in the top 32% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
