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Here's Why Alibaba (BABA) Gained But Lagged the Market Today
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In the latest trading session, Alibaba (BABA - Free Report) closed at $78.38, marking a +0.47% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.64%. On the other hand, the Dow registered a gain of 1.85%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the online retailer had gained 4.64% over the past month, outpacing the Retail-Wholesale sector's gain of 2.58% and the S&P 500's gain of 3.82% in that time.
Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.24, indicating a 6.67% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $34.95 billion, reflecting an 8.22% rise from the equivalent quarter last year.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $8.20 per share and revenue of $138.63 billion. These results would represent year-over-year changes of -4.87% and +6.23%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. Alibaba is currently a Zacks Rank #4 (Sell).
Digging into valuation, Alibaba currently has a Forward P/E ratio of 9.52. This valuation marks a discount compared to its industry's average Forward P/E of 22.35.
We can also see that BABA currently has a PEG ratio of 0.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 59, putting 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Here's Why Alibaba (BABA) Gained But Lagged the Market Today
In the latest trading session, Alibaba (BABA - Free Report) closed at $78.38, marking a +0.47% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.64%. On the other hand, the Dow registered a gain of 1.85%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the online retailer had gained 4.64% over the past month, outpacing the Retail-Wholesale sector's gain of 2.58% and the S&P 500's gain of 3.82% in that time.
Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.24, indicating a 6.67% decline compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $34.95 billion, reflecting an 8.22% rise from the equivalent quarter last year.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $8.20 per share and revenue of $138.63 billion. These results would represent year-over-year changes of -4.87% and +6.23%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. Alibaba is currently a Zacks Rank #4 (Sell).
Digging into valuation, Alibaba currently has a Forward P/E ratio of 9.52. This valuation marks a discount compared to its industry's average Forward P/E of 22.35.
We can also see that BABA currently has a PEG ratio of 0.41. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce was holding an average PEG ratio of 1.08 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 59, putting 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.