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Alibaba (BABA) Stock Moves -0.61%: What You Should Know
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Alibaba (BABA - Free Report) closed the most recent trading day at $76.98, moving -0.61% from the previous trading session. This move was narrower than the S&P 500's daily loss of 3%. Elsewhere, the Dow saw a downswing of 2.6%, while the tech-heavy Nasdaq depreciated by 3.43%.
Heading into today, shares of the online retailer had gained 3.93% over the past month, outpacing the Retail-Wholesale sector's loss of 5.36% and the S&P 500's loss of 2.92% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. The company's earnings report is set to go public on August 15, 2024. The company is expected to report EPS of $2.24, down 6.67% from the prior-year quarter. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.20 per share and revenue of $141.05 billion, indicating changes of -4.87% and +8.08%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Alibaba. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Alibaba currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Alibaba is presently trading at a Forward P/E ratio of 9.45. Its industry sports an average Forward P/E of 18.55, so one might conclude that Alibaba is trading at a discount comparatively.
Investors should also note that BABA has a PEG ratio of 0.41 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce industry had an average PEG ratio of 0.99 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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 Moves -0.61%: What You Should Know
Alibaba (BABA - Free Report) closed the most recent trading day at $76.98, moving -0.61% from the previous trading session. This move was narrower than the S&P 500's daily loss of 3%. Elsewhere, the Dow saw a downswing of 2.6%, while the tech-heavy Nasdaq depreciated by 3.43%.
Heading into today, shares of the online retailer had gained 3.93% over the past month, outpacing the Retail-Wholesale sector's loss of 5.36% and the S&P 500's loss of 2.92% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. The company's earnings report is set to go public on August 15, 2024. The company is expected to report EPS of $2.24, down 6.67% from the prior-year quarter. 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.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.20 per share and revenue of $141.05 billion, indicating changes of -4.87% and +8.08%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Alibaba. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Alibaba currently has a Zacks Rank of #4 (Sell).
Looking at valuation, Alibaba is presently trading at a Forward P/E ratio of 9.45. Its industry sports an average Forward P/E of 18.55, so one might conclude that Alibaba is trading at a discount comparatively.
Investors should also note that BABA has a PEG ratio of 0.41 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Commerce industry had an average PEG ratio of 0.99 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 64, positioning it in the top 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.