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Alibaba (BABA) Outpaces Stock Market Gains: What You Should Know
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Alibaba (BABA - Free Report) closed at $96.42 in the latest trading session, marking a +1.98% move from the prior day. This move outpaced the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.
Prior to today's trading, shares of the online retailer had gained 15.77% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.83% and the S&P 500's gain of 5.67% 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, the Zacks Consensus Estimate for revenue is projecting net sales of $31.08 billion, down 3.44% from the year-ago period.
Any recent changes to analyst estimates for Alibaba should also be noted by investors. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.46% lower. Alibaba is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 11.54 right now. This represents a discount compared to its industry's average Forward P/E of 22.28.
Meanwhile, BABA's PEG ratio is currently 0.91. 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 industry currently had an average PEG ratio of 1.16 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 84, which puts it in the top 34% 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.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.
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Alibaba (BABA) Outpaces Stock Market Gains: What You Should Know
Alibaba (BABA - Free Report) closed at $96.42 in the latest trading session, marking a +1.98% move from the prior day. This move outpaced the S&P 500's daily gain of 0.33%. At the same time, the Dow added 0.3%, and the tech-heavy Nasdaq gained 1.92%.
Prior to today's trading, shares of the online retailer had gained 15.77% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.83% and the S&P 500's gain of 5.67% 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, the Zacks Consensus Estimate for revenue is projecting net sales of $31.08 billion, down 3.44% from the year-ago period.
Any recent changes to analyst estimates for Alibaba should also be noted by investors. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 4.46% lower. Alibaba is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 11.54 right now. This represents a discount compared to its industry's average Forward P/E of 22.28.
Meanwhile, BABA's PEG ratio is currently 0.91. 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 industry currently had an average PEG ratio of 1.16 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 84, which puts it in the top 34% 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.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.