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Alibaba (BABA) Stock Moves -0.94%: What You Should Know

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In the latest market close, Alibaba (BABA - Free Report) reached $70.62, with a -0.94% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 1.2% for the day. Meanwhile, the Dow experienced a drop of 0.65%, and the technology-dominated Nasdaq saw a decrease of 1.79%.

Shares of the online retailer have depreciated by 2.9% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.91% and the S&P 500's loss of 0.85%.

The upcoming earnings release of Alibaba will be of great interest to investors. The company is forecasted to report an EPS of $1.56, showcasing no movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $30.96 billion, reflecting a 2.12% rise from the equivalent quarter last year.

Investors should also take note of any recent adjustments 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 past month, there's been no change in the Zacks Consensus EPS estimate. Alibaba is currently a Zacks Rank #3 (Hold).

In terms of valuation, Alibaba is presently being traded at a Forward P/E ratio of 8.07. This indicates a discount in contrast to its industry's Forward P/E of 20.18.

The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 42, placing it within the top 17% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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