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Alibaba (BABA) Gains As Market Dips: What You Should Know
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Alibaba (BABA - Free Report) closed at $104.58 in the latest trading session, marking a +0.64% move from the prior day. This change outpaced the S&P 500's 1.17% loss on the day. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.
Coming into today, shares of the online retailer had gained 17.65% in the past month. In that same time, the Retail-Wholesale sector lost 4.27%, while the S&P 500 lost 5.25%.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. In that report, analysts expect Alibaba to post earnings of $2.16 per share. This would mark a year-over-year decline of 18.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.54 billion, down 6.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.13 per share and revenue of $125.58 billion. These totals would mark changes of -14.2% and -5.77%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Alibaba. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alibaba is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Alibaba is currently trading at a Forward P/E ratio of 14.58. This represents a discount compared to its industry's average Forward P/E of 18.37.
Investors should also note that BABA has a PEG ratio of 1.15 right now. 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. The Internet - Commerce was holding an average PEG ratio of 1.15 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.
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Alibaba (BABA) Gains As Market Dips: What You Should Know
Alibaba (BABA - Free Report) closed at $104.58 in the latest trading session, marking a +0.64% move from the prior day. This change outpaced the S&P 500's 1.17% loss on the day. At the same time, the Dow lost 1.02%, and the tech-heavy Nasdaq lost 2.45%.
Coming into today, shares of the online retailer had gained 17.65% in the past month. In that same time, the Retail-Wholesale sector lost 4.27%, while the S&P 500 lost 5.25%.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. In that report, analysts expect Alibaba to post earnings of $2.16 per share. This would mark a year-over-year decline of 18.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.54 billion, down 6.64% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.13 per share and revenue of $125.58 billion. These totals would mark changes of -14.2% and -5.77%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Alibaba. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alibaba is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Alibaba is currently trading at a Forward P/E ratio of 14.58. This represents a discount compared to its industry's average Forward P/E of 18.37.
Investors should also note that BABA has a PEG ratio of 1.15 right now. 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. The Internet - Commerce was holding an average PEG ratio of 1.15 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% 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.