We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alibaba (BABA) Gains As Market Dips: What You Should Know
Read MoreHide Full Article
Alibaba (BABA - Free Report) closed at $72.02 in the latest trading session, marking a +1.05% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.8%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Prior to today's trading, shares of the online retailer had lost 12.66% over the past month. This has lagged the Retail-Wholesale sector's loss of 7.11% and the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from Alibaba as it approaches its next earnings release. The company is expected to report EPS of $1.68, down 3.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.03 billion, up 2.85% from the year-ago period.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $7.61 per share and revenue of $134.28 billion. These results would represent year-over-year changes of -8.42% and +0.76%, respectively.
Any recent changes to analyst estimates for Alibaba should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 has moved 0.55% lower. Alibaba is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 9.37 right now. This represents a discount compared to its industry's average Forward P/E of 21.07.
Meanwhile, BABA's PEG ratio is currently 1. 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. BABA's industry had an average PEG ratio of 1.08 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alibaba (BABA) Gains As Market Dips: What You Should Know
Alibaba (BABA - Free Report) closed at $72.02 in the latest trading session, marking a +1.05% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.8%. Meanwhile, the Dow lost 0.3%, and the Nasdaq, a tech-heavy index, lost 0.03%.
Prior to today's trading, shares of the online retailer had lost 12.66% over the past month. This has lagged the Retail-Wholesale sector's loss of 7.11% and the S&P 500's loss of 5.13% in that time.
Investors will be hoping for strength from Alibaba as it approaches its next earnings release. The company is expected to report EPS of $1.68, down 3.45% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $32.03 billion, up 2.85% from the year-ago period.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $7.61 per share and revenue of $134.28 billion. These results would represent year-over-year changes of -8.42% and +0.76%, respectively.
Any recent changes to analyst estimates for Alibaba should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 has moved 0.55% lower. Alibaba is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 9.37 right now. This represents a discount compared to its industry's average Forward P/E of 21.07.
Meanwhile, BABA's PEG ratio is currently 1. 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. BABA's industry had an average PEG ratio of 1.08 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 20% 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.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.