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Alibaba (BABA) Ascends While Market Falls: Some Facts to Note

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Alibaba (BABA - Free Report) closed the most recent trading day at $75.51, moving +0.88% from the previous trading session. This change outpaced the S&P 500's 0.34% loss on the day. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, lost 0.33%.

Coming into today, shares of the online retailer had gained 2.7% in the past month. In that same time, the Retail-Wholesale sector lost 4.37%, while the S&P 500 lost 4.05%.

The upcoming earnings release of Alibaba will be of great interest to investors. The company's earnings report is expected on May 14, 2024. In that report, analysts expect Alibaba to post earnings of $1.20 per share. This would mark a year-over-year decline of 23.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $30.83 billion, up 1.7% from the year-ago period.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alibaba. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 9.8% lower. Alibaba presently features a Zacks Rank of #5 (Strong Sell).

Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 9.03 right now. This indicates a discount in contrast to its industry's Forward P/E of 19.6.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 35, which puts it in the top 14% of all 250+ industries.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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