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Alibaba (BABA) Gains As Market Dips: What You Should Know
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Alibaba (BABA - Free Report) closed the most recent trading day at $152.39, moving +1.47% from the previous trading session. The stock outpaced the S&P 500's daily loss of 2.04%.
Heading into today, shares of the online retailer had lost 7.46% over the past month, lagging the Retail-Wholesale sector's gain of 0.32% and the S&P 500's loss of 1.36% in that time.
Wall Street will be looking for positivity from BABA as it approaches its next earnings report date. The company is expected to report EPS of $2.11, down 20.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $32.55 billion, up 42.52% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.73 per share and revenue of $142.27 billion. These totals would mark changes of -2.11% and +32.86%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BABA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BABA is currently a Zacks Rank #3 (Hold).
Investors should also note BABA's current valuation metrics, including its Forward P/E ratio of 15.44. For comparison, its industry has an average Forward P/E of 52.59, which means BABA is trading at a discount to the group.
Also, we should mention that BABA has a PEG ratio of 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.48 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 212, which puts it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Alibaba (BABA) Gains As Market Dips: What You Should Know
Alibaba (BABA - Free Report) closed the most recent trading day at $152.39, moving +1.47% from the previous trading session. The stock outpaced the S&P 500's daily loss of 2.04%.
Heading into today, shares of the online retailer had lost 7.46% over the past month, lagging the Retail-Wholesale sector's gain of 0.32% and the S&P 500's loss of 1.36% in that time.
Wall Street will be looking for positivity from BABA as it approaches its next earnings report date. The company is expected to report EPS of $2.11, down 20.38% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $32.55 billion, up 42.52% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.73 per share and revenue of $142.27 billion. These totals would mark changes of -2.11% and +32.86%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BABA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BABA is currently a Zacks Rank #3 (Hold).
Investors should also note BABA's current valuation metrics, including its Forward P/E ratio of 15.44. For comparison, its industry has an average Forward P/E of 52.59, which means BABA is trading at a discount to the group.
Also, we should mention that BABA has a PEG ratio of 1. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.48 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 212, which puts it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.