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Alibaba (BABA) Stock Declines While Market Improves: Some Information for Investors
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Alibaba (BABA - Free Report) closed the latest trading day at $73.50, indicating a -1.37% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.1%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq gained 0.28%.
Coming into today, shares of the online retailer had lost 4.96% in the past month. In that same time, the Retail-Wholesale sector gained 3.31%, while the S&P 500 gained 4.08%.
The investment community will be paying close attention to the earnings performance of Alibaba in its upcoming release. The company is expected to report EPS of $2.24, down 6.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.95 billion, up 8.22% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.20 per share and revenue of $138.63 billion, indicating changes of -4.87% and +6.57%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Alibaba. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. Alibaba is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Alibaba is currently being traded at a Forward P/E ratio of 9.09. Its industry sports an average Forward P/E of 13.92, so one might conclude that Alibaba is trading at a discount comparatively.
Investors should also note that BABA has a PEG ratio of 0.39 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 0.94 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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 Declines While Market Improves: Some Information for Investors
Alibaba (BABA - Free Report) closed the latest trading day at $73.50, indicating a -1.37% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.1%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq gained 0.28%.
Coming into today, shares of the online retailer had lost 4.96% in the past month. In that same time, the Retail-Wholesale sector gained 3.31%, while the S&P 500 gained 4.08%.
The investment community will be paying close attention to the earnings performance of Alibaba in its upcoming release. The company is expected to report EPS of $2.24, down 6.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.95 billion, up 8.22% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.20 per share and revenue of $138.63 billion, indicating changes of -4.87% and +6.57%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Alibaba. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection remained stagnant. Alibaba is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Alibaba is currently being traded at a Forward P/E ratio of 9.09. Its industry sports an average Forward P/E of 13.92, so one might conclude that Alibaba is trading at a discount comparatively.
Investors should also note that BABA has a PEG ratio of 0.39 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 0.94 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 60, positioning it in the top 24% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.