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Alibaba (BABA) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Alibaba (BABA - Free Report) closed at $217.75, marking a -1.86% move from the previous day. This change lagged the S&P 500's daily gain of 0.75%.
Coming into today, shares of the online retailer had lost 0.58% in the past month. In that same time, the Retail-Wholesale sector gained 3.58%, while the S&P 500 gained 3.52%.
Wall Street will be looking for positivity from BABA as it approaches its next earnings report date. On that day, BABA is projected to report earnings of $2.85 per share, which would represent year-over-year growth of 35.71%. Meanwhile, our latest consensus estimate is calling for revenue of $33.31 billion, up 53.04% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.24 per share and revenue of $144.2 billion, which would represent changes of +13.08% and +34.66%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BABA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant. BABA currently has a Zacks Rank of #3 (Hold).
Digging into valuation, BABA currently has a Forward P/E ratio of 19.37. This represents a discount compared to its industry's average Forward P/E of 53.65.
Also, we should mention that BABA has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alibaba (BABA) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Alibaba (BABA - Free Report) closed at $217.75, marking a -1.86% move from the previous day. This change lagged the S&P 500's daily gain of 0.75%.
Coming into today, shares of the online retailer had lost 0.58% in the past month. In that same time, the Retail-Wholesale sector gained 3.58%, while the S&P 500 gained 3.52%.
Wall Street will be looking for positivity from BABA as it approaches its next earnings report date. On that day, BABA is projected to report earnings of $2.85 per share, which would represent year-over-year growth of 35.71%. Meanwhile, our latest consensus estimate is calling for revenue of $33.31 billion, up 53.04% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.24 per share and revenue of $144.2 billion, which would represent changes of +13.08% and +34.66%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for BABA. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant. BABA currently has a Zacks Rank of #3 (Hold).
Digging into valuation, BABA currently has a Forward P/E ratio of 19.37. This represents a discount compared to its industry's average Forward P/E of 53.65.
Also, we should mention that BABA has a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.86 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.