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Alibaba (BABA) Increases Yet Falls Behind Market: What Investors Need to Know

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The latest trading session saw Alibaba (BABA - Free Report) ending at $85.36, denoting a +0.06% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.18%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq appreciated by 0.3%.

Coming into today, shares of the online retailer had lost 0.87% in the past month. In that same time, the Retail-Wholesale sector gained 5.64%, while the S&P 500 gained 3.08%.

The upcoming earnings release of Alibaba will be of great interest to investors. The company's earnings report is expected on November 16, 2023. On that day, Alibaba is projected to report earnings of $2.11 per share, which would represent year-over-year growth of 15.93%. In the meantime, our current consensus estimate forecasts the revenue to be $31.01 billion, indicating a 6.47% growth compared to the corresponding quarter of the prior year.

BABA's full-year Zacks Consensus Estimates are calling for earnings of $8.88 per share and revenue of $133.05 billion. These results would represent year-over-year changes of +11.84% and +5.55%, respectively.

Investors might also notice recent changes to analyst estimates for Alibaba. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.44% lower. Alibaba is currently a Zacks Rank #3 (Hold).

Looking at its valuation, Alibaba is holding a Forward P/E ratio of 9.61. This valuation marks a discount compared to its industry's average Forward P/E of 20.44.

The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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