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Alibaba (BABA) Gains As Market Dips: What You Should Know
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Alibaba (BABA - Free Report) closed at $75.73 in the latest trading session, marking a +0.48% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.33%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the online retailer had lost 15.76% in the past month. In that same time, the Retail-Wholesale sector lost 11.72%, while the S&P 500 lost 11.67%.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. On that day, Alibaba is projected to report earnings of $1.68 per share, which would represent a year-over-year decline of 3.45%. Meanwhile, our latest consensus estimate is calling for revenue of $32.03 billion, up 2.85% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.61 per share and revenue of $134.28 billion. These totals would mark changes of -8.42% and +0.76%, respectively, from last year.
It is also important to note the recent changes to analyst estimates 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 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.55% lower. Alibaba currently has a Zacks Rank of #3 (Hold).
Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 9.9. For comparison, its industry has an average Forward P/E of 21.67, which means Alibaba is trading at a discount to the group.
Investors should also note that BABA has a PEG ratio of 1.05 right now. 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 1.07 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Alibaba (BABA) Gains As Market Dips: What You Should Know
Alibaba (BABA - Free Report) closed at $75.73 in the latest trading session, marking a +0.48% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.33%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq lost 0.27%.
Coming into today, shares of the online retailer had lost 15.76% in the past month. In that same time, the Retail-Wholesale sector lost 11.72%, while the S&P 500 lost 11.67%.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. On that day, Alibaba is projected to report earnings of $1.68 per share, which would represent a year-over-year decline of 3.45%. Meanwhile, our latest consensus estimate is calling for revenue of $32.03 billion, up 2.85% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.61 per share and revenue of $134.28 billion. These totals would mark changes of -8.42% and +0.76%, respectively, from last year.
It is also important to note the recent changes to analyst estimates 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 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.55% lower. Alibaba currently has a Zacks Rank of #3 (Hold).
Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 9.9. For comparison, its industry has an average Forward P/E of 21.67, which means Alibaba is trading at a discount to the group.
Investors should also note that BABA has a PEG ratio of 1.05 right now. 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 1.07 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 27% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.