We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alibaba (BABA) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
Alibaba (BABA - Free Report) closed at $91.79 in the latest trading session, marking a +1.36% move from the prior day. This move outpaced the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 9.29%.
Coming into today, shares of the online retailer had gained 5.47% in the past month. In that same time, the Retail-Wholesale sector gained 2.85%, while the S&P 500 gained 2.65%.
Alibaba will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alibaba to post earnings of $1.89 per share. This would mark year-over-year growth of 8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.21 billion, up 1.71% from the year-ago period.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $7.99 per share and revenue of $132.44 billion. These results would represent year-over-year changes of +0.63% and +5.07%, respectively.
Investors should also note any recent changes to analyst estimates for Alibaba. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Alibaba is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 11.34 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.75.
Meanwhile, BABA's PEG ratio is currently 0.83. 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 was holding an average PEG ratio of 1.16 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alibaba (BABA) Outpaces Stock Market Gains: What You Should Know
Alibaba (BABA - Free Report) closed at $91.79 in the latest trading session, marking a +1.36% move from the prior day. This move outpaced the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.93%, and the Nasdaq, a tech-heavy index, added 9.29%.
Coming into today, shares of the online retailer had gained 5.47% in the past month. In that same time, the Retail-Wholesale sector gained 2.85%, while the S&P 500 gained 2.65%.
Alibaba will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alibaba to post earnings of $1.89 per share. This would mark year-over-year growth of 8%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $31.21 billion, up 1.71% from the year-ago period.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $7.99 per share and revenue of $132.44 billion. These results would represent year-over-year changes of +0.63% and +5.07%, respectively.
Investors should also note any recent changes to analyst estimates for Alibaba. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant. Alibaba is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 11.34 right now. This valuation marks a discount compared to its industry's average Forward P/E of 19.75.
Meanwhile, BABA's PEG ratio is currently 0.83. 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 was holding an average PEG ratio of 1.16 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 39% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.