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Alibaba (BABA) Stock Moves -0.06%: What You Should Know
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In the latest trading session, Alibaba (BABA - Free Report) closed at $81.48, marking a -0.06% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Heading into today, shares of the online retailer had lost 19.05% over the past month, lagging the Retail-Wholesale sector's loss of 0.81% and the S&P 500's gain of 0.39% in that time.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. On that day, Alibaba is projected to report earnings of $1.30 per share, which would represent year-over-year growth of 4%. Meanwhile, our latest consensus estimate is calling for revenue of $30.87 billion, down 4.1% from the prior-year quarter.
Investors should also note any 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.7% lower within the past month. Alibaba currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Alibaba is currently trading at a Forward P/E ratio of 9.95. Its industry sports an average Forward P/E of 21.31, so we one might conclude that Alibaba is trading at a discount comparatively.
Investors should also note that BABA has a PEG ratio of 0.78 right now. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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 Moves -0.06%: What You Should Know
In the latest trading session, Alibaba (BABA - Free Report) closed at $81.48, marking a -0.06% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.7%. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Heading into today, shares of the online retailer had lost 19.05% over the past month, lagging the Retail-Wholesale sector's loss of 0.81% and the S&P 500's gain of 0.39% in that time.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. On that day, Alibaba is projected to report earnings of $1.30 per share, which would represent year-over-year growth of 4%. Meanwhile, our latest consensus estimate is calling for revenue of $30.87 billion, down 4.1% from the prior-year quarter.
Investors should also note any 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.7% lower within the past month. Alibaba currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Alibaba is currently trading at a Forward P/E ratio of 9.95. Its industry sports an average Forward P/E of 21.31, so we one might conclude that Alibaba is trading at a discount comparatively.
Investors should also note that BABA has a PEG ratio of 0.78 right now. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% 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.