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Alibaba (BABA) Outpaces Stock Market Gains: What You Should Know
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Alibaba (BABA - Free Report) closed the most recent trading day at $120.38, moving +1.34% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.
Heading into today, shares of the online retailer had gained 6.1% over the past month, outpacing the Retail-Wholesale sector's loss of 0.1% and the S&P 500's gain of 4.56% in that time.
Alibaba will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.87, down 44.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors might also notice recent changes to analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alibaba is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Alibaba is holding a Forward P/E ratio of 14.21. Its industry sports an average Forward P/E of 51.48, so we one might conclude that Alibaba is trading at a discount comparatively.
It is also worth noting that BABA currently has a PEG ratio of 0.92. 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. The Internet - Commerce industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Alibaba (BABA) Outpaces Stock Market Gains: What You Should Know
Alibaba (BABA - Free Report) closed the most recent trading day at $120.38, moving +1.34% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.68%, and the Nasdaq, a tech-heavy index, added 0.46%.
Heading into today, shares of the online retailer had gained 6.1% over the past month, outpacing the Retail-Wholesale sector's loss of 0.1% and the S&P 500's gain of 4.56% in that time.
Alibaba will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.87, down 44.67% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue 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.
Investors might also notice recent changes to analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alibaba is currently sporting a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Alibaba is holding a Forward P/E ratio of 14.21. Its industry sports an average Forward P/E of 51.48, so we one might conclude that Alibaba is trading at a discount comparatively.
It is also worth noting that BABA currently has a PEG ratio of 0.92. 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. The Internet - Commerce industry currently had an average PEG ratio of 2.05 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 15% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.