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Alibaba (BABA) Outpaces Stock Market Gains: What You Should Know
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Alibaba (BABA - Free Report) closed at $118.66 in the latest trading session, marking a +0.72% move from the prior day. This change outpaced the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.
Coming into today, shares of the online retailer had lost 13.71% in the past month. In that same time, the Retail-Wholesale sector lost 4.69%, while the S&P 500 gained 0.39%.
Alibaba will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.60, down 23.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $39.37 billion, up 16.19% from the year-ago period.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $8.36 per share and revenue of $135.25 billion. These results would represent year-over-year changes of -15.9% and +26.3%, respectively.
Any recent changes to analyst estimates for Alibaba should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. Alibaba currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 14.1. For comparison, its industry has an average Forward P/E of 50.95, which means Alibaba is trading at a discount to the group.
Meanwhile, BABA's PEG ratio is currently 0.91. 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. The Internet - Commerce industry currently had an average PEG ratio of 2.02 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% 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.
View the Zacks #1 Rank List
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Alibaba (BABA) Outpaces Stock Market Gains: What You Should Know
Alibaba (BABA - Free Report) closed at $118.66 in the latest trading session, marking a +0.72% move from the prior day. This change outpaced the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.03%.
Coming into today, shares of the online retailer had lost 13.71% in the past month. In that same time, the Retail-Wholesale sector lost 4.69%, while the S&P 500 gained 0.39%.
Alibaba will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.60, down 23.08% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $39.37 billion, up 16.19% from the year-ago period.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $8.36 per share and revenue of $135.25 billion. These results would represent year-over-year changes of -15.9% and +26.3%, respectively.
Any recent changes to analyst estimates for Alibaba should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. Alibaba currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 14.1. For comparison, its industry has an average Forward P/E of 50.95, which means Alibaba is trading at a discount to the group.
Meanwhile, BABA's PEG ratio is currently 0.91. 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. The Internet - Commerce industry currently had an average PEG ratio of 2.02 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 226, putting it in the bottom 12% 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.