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Alibaba (BABA) Stock Falls Amid Market Uptick: What Investors Need to Know
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The latest trading session saw Alibaba (BABA - Free Report) ending at $84.85, denoting a -1.41% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.39%.
The the stock of online retailer has fallen by 4.43% in the past month, leading the Retail-Wholesale sector's loss of 5.62% and undershooting the S&P 500's loss of 3.39%.
The investment community will be paying close attention to the earnings performance of Alibaba in its upcoming release. It is anticipated that the company will report an EPS of $2.15, marking a 18.13% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $31.68 billion, indicating an 8.78% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.13 per share and a revenue of $133.89 billion, indicating changes of +14.99% and +4.67%, respectively, from the former 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Alibaba holds a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Alibaba is currently exchanging hands at a Forward P/E ratio of 9.43. This signifies a discount in comparison to the average Forward P/E of 19.77 for its industry.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% 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 Falls Amid Market Uptick: What Investors Need to Know
The latest trading session saw Alibaba (BABA - Free Report) ending at $84.85, denoting a -1.41% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.63%. Meanwhile, the Dow gained 0.59%, and the Nasdaq, a tech-heavy index, added 0.39%.
The the stock of online retailer has fallen by 4.43% in the past month, leading the Retail-Wholesale sector's loss of 5.62% and undershooting the S&P 500's loss of 3.39%.
The investment community will be paying close attention to the earnings performance of Alibaba in its upcoming release. It is anticipated that the company will report an EPS of $2.15, marking a 18.13% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $31.68 billion, indicating an 8.78% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.13 per share and a revenue of $133.89 billion, indicating changes of +14.99% and +4.67%, respectively, from the former 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Alibaba holds a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Alibaba is currently exchanging hands at a Forward P/E ratio of 9.43. This signifies a discount in comparison to the average Forward P/E of 19.77 for its industry.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 74, positioning it in the top 30% 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.