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Alibaba (BABA) Dips More Than Broader Markets: What You Should Know
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Alibaba (BABA - Free Report) closed at $88.09 in the latest trading session, marking a -1.17% move from the prior day. This change lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 5.91%.
Heading into today, shares of the online retailer had gained 3.71% over the past month, outpacing the Retail-Wholesale sector's loss of 4.16% and the S&P 500's loss of 2.59% 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 $2.22, down 16.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $36.36 billion, down 4.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.13 per share and revenue of $126.9 billion. These totals would mark changes of -14.2% and -4.78%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Alibaba. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Alibaba is currently a Zacks Rank #4 (Sell).
Digging into valuation, Alibaba currently has a Forward P/E ratio of 12.51. For comparison, its industry has an average Forward P/E of 23.53, which means Alibaba is trading at a discount to the group.
Meanwhile, BABA's PEG ratio is currently 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BABA's industry had an average PEG ratio of 1.26 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 94, which puts it in the top 38% 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) Dips More Than Broader Markets: What You Should Know
Alibaba (BABA - Free Report) closed at $88.09 in the latest trading session, marking a -1.17% move from the prior day. This change lagged the S&P 500's daily loss of 0.25%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 5.91%.
Heading into today, shares of the online retailer had gained 3.71% over the past month, outpacing the Retail-Wholesale sector's loss of 4.16% and the S&P 500's loss of 2.59% 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 $2.22, down 16.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $36.36 billion, down 4.49% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.13 per share and revenue of $126.9 billion. These totals would mark changes of -14.2% and -4.78%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Alibaba. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Alibaba is currently a Zacks Rank #4 (Sell).
Digging into valuation, Alibaba currently has a Forward P/E ratio of 12.51. For comparison, its industry has an average Forward P/E of 23.53, which means Alibaba is trading at a discount to the group.
Meanwhile, BABA's PEG ratio is currently 0.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BABA's industry had an average PEG ratio of 1.26 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 94, which puts it in the top 38% 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.