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Alibaba (BABA) Stock Sinks As Market Gains: What You Should Know
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Alibaba (BABA - Free Report) closed the most recent trading day at $115.15, moving -1.78% from the previous trading session. This change lagged the S&P 500's daily gain of 1.43%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq added 0.32%.
Prior to today's trading, shares of the online retailer had gained 6.85% over the past month. This has outpaced the Retail-Wholesale sector's gain of 6.49% and the S&P 500's gain of 5.65% in that time.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. The company is expected to report EPS of $1.31, down 17.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $33.22 billion, up 16.15% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.38 per share and revenue of $133.26 billion. These totals would mark changes of -15.69% and +24.44%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Alibaba. 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.
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.
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. The Zacks Consensus EPS estimate has moved 4.44% lower within the past month. Alibaba is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, Alibaba currently has a Forward P/E ratio of 13.99. This represents a discount compared to its industry's average Forward P/E of 26.21.
Investors should also note that BABA has a PEG ratio of 1.49 right now. 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 1.38 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% 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) Stock Sinks As Market Gains: What You Should Know
Alibaba (BABA - Free Report) closed the most recent trading day at $115.15, moving -1.78% from the previous trading session. This change lagged the S&P 500's daily gain of 1.43%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq added 0.32%.
Prior to today's trading, shares of the online retailer had gained 6.85% over the past month. This has outpaced the Retail-Wholesale sector's gain of 6.49% and the S&P 500's gain of 5.65% in that time.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. The company is expected to report EPS of $1.31, down 17.09% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $33.22 billion, up 16.15% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.38 per share and revenue of $133.26 billion. These totals would mark changes of -15.69% and +24.44%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Alibaba. 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.
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.
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. The Zacks Consensus EPS estimate has moved 4.44% lower within the past month. Alibaba is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, Alibaba currently has a Forward P/E ratio of 13.99. This represents a discount compared to its industry's average Forward P/E of 26.21.
Investors should also note that BABA has a PEG ratio of 1.49 right now. 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 1.38 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 229, putting it in the bottom 10% 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.