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Alibaba (BABA) Increases Despite Market Slip: Here's What You Need to Know
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Alibaba (BABA - Free Report) ended the recent trading session at $108.07, demonstrating a +2.64% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 4.36% for the day. Elsewhere, the Dow saw a downswing of 3.44%, while the tech-heavy Nasdaq depreciated by 5.52%.
Shares of the online retailer witnessed a loss of 1.6% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 11.64%, and the S&P 500's loss of 0.38%.
The investment community will be paying close attention to the earnings performance of Alibaba in its upcoming release. On that day, Alibaba is projected to report earnings of $1.46 per share, which would represent year-over-year growth of 139.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $40.35 billion, up 15.93% from the year-ago period.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $6.37 per share and revenue of $166.71 billion. These results would represent year-over-year changes of +63.75% and +14.66%, respectively.
Investors should also take note of any recent adjustments 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 business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.69% decrease. Alibaba is currently a Zacks Rank #3 (Hold).
Looking at valuation, Alibaba is presently trading at a Forward P/E ratio of 16.54. This represents a premium compared to its industry average Forward P/E of 16.29.
Meanwhile, BABA's PEG ratio is currently 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.22 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 166, finds itself in the bottom 33% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
View the Zacks #1 Rank List
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Alibaba (BABA) Increases Despite Market Slip: Here's What You Need to Know
Alibaba (BABA - Free Report) ended the recent trading session at $108.07, demonstrating a +2.64% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 4.36% for the day. Elsewhere, the Dow saw a downswing of 3.44%, while the tech-heavy Nasdaq depreciated by 5.52%.
Shares of the online retailer witnessed a loss of 1.6% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 11.64%, and the S&P 500's loss of 0.38%.
The investment community will be paying close attention to the earnings performance of Alibaba in its upcoming release. On that day, Alibaba is projected to report earnings of $1.46 per share, which would represent year-over-year growth of 139.34%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $40.35 billion, up 15.93% from the year-ago period.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $6.37 per share and revenue of $166.71 billion. These results would represent year-over-year changes of +63.75% and +14.66%, respectively.
Investors should also take note of any recent adjustments 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 business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.69% decrease. Alibaba is currently a Zacks Rank #3 (Hold).
Looking at valuation, Alibaba is presently trading at a Forward P/E ratio of 16.54. This represents a premium compared to its industry average Forward P/E of 16.29.
Meanwhile, BABA's PEG ratio is currently 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.22 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 166, finds itself in the bottom 33% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.