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Alibaba (BABA) Outpaces Stock Market Gains: What You Should Know
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Alibaba (BABA - Free Report) closed at $144.10 in the latest trading session, marking a +0.67% move from the prior day. This move outpaced the S&P 500's daily gain of 0.41%.
Coming into today, shares of the online retailer had lost 18.28% in the past month. In that same time, the Retail-Wholesale sector lost 7.3%, while the S&P 500 lost 4.08%.
BABA will be looking to display strength as it nears its next earnings release. In that report, analysts expect BABA to post earnings of $1.95 per share. This would mark a year-over-year decline of 26.42%. Meanwhile, our latest consensus estimate is calling for revenue of $32 billion, up 40.12% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.15 per share and revenue of $140.83 billion, which would represent changes of -7.95% and +31.51%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for BABA. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 7.39% lower. BABA is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that BABA has a Forward P/E ratio of 15.65 right now. For comparison, its industry has an average Forward P/E of 46.79, which means BABA is trading at a discount to the group.
Investors should also note that BABA has a PEG ratio of 1.01 right now. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.35 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 205, which puts it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Alibaba (BABA) Outpaces Stock Market Gains: What You Should Know
Alibaba (BABA - Free Report) closed at $144.10 in the latest trading session, marking a +0.67% move from the prior day. This move outpaced the S&P 500's daily gain of 0.41%.
Coming into today, shares of the online retailer had lost 18.28% in the past month. In that same time, the Retail-Wholesale sector lost 7.3%, while the S&P 500 lost 4.08%.
BABA will be looking to display strength as it nears its next earnings release. In that report, analysts expect BABA to post earnings of $1.95 per share. This would mark a year-over-year decline of 26.42%. Meanwhile, our latest consensus estimate is calling for revenue of $32 billion, up 40.12% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.15 per share and revenue of $140.83 billion, which would represent changes of -7.95% and +31.51%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for BABA. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 7.39% lower. BABA is holding a Zacks Rank of #5 (Strong Sell) right now.
Valuation is also important, so investors should note that BABA has a Forward P/E ratio of 15.65 right now. For comparison, its industry has an average Forward P/E of 46.79, which means BABA is trading at a discount to the group.
Investors should also note that BABA has a PEG ratio of 1.01 right now. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 2.35 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 205, which puts it in the bottom 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.