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Alibaba (BABA) Stock Moves -1.15%: What You Should Know

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In the latest trading session, Alibaba (BABA - Free Report) closed at $78.46, marking a -1.15% move from the previous day. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq lost 0.18%.

Shares of the online retailer witnessed a gain of 8.74% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.94% and the S&P 500's loss of 0.22%.

Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. The company's earnings report is set to go public on May 14, 2024. The company is forecasted to report an EPS of $1.20, showcasing a 23.08% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $30.6 billion, up 0.93% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alibaba. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 9.8% downward. Alibaba is currently a Zacks Rank #5 (Strong Sell).

In the context of valuation, Alibaba is at present trading with a Forward P/E ratio of 9.58. This indicates a discount in contrast to its industry's Forward P/E of 20.2.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 26% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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