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Alibaba (BABA) Stock Moves -0.11%: What You Should Know
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In the latest trading session, Alibaba (BABA - Free Report) closed at $116.58, marking a -0.11% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Heading into today, shares of the online retailer had gained 8.98% over the past month, outpacing the Retail-Wholesale sector's gain of 5.75% and the S&P 500's gain of 6.02% 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 $1.31, down 17.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.22 billion, up 16.15% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 2.97% higher. Alibaba is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alibaba is holding a Forward P/E ratio of 13.93. This represents a discount compared to its industry's average Forward P/E of 27.16.
Also, we should mention that BABA has a PEG ratio of 1.48. 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. The Internet - Commerce industry currently had an average PEG ratio of 1.45 as of yesterday's close.
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 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Alibaba (BABA) Stock Moves -0.11%: What You Should Know
In the latest trading session, Alibaba (BABA - Free Report) closed at $116.58, marking a -0.11% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.63%. Meanwhile, the Dow lost 0.19%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Heading into today, shares of the online retailer had gained 8.98% over the past month, outpacing the Retail-Wholesale sector's gain of 5.75% and the S&P 500's gain of 6.02% 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 $1.31, down 17.09% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $33.22 billion, up 16.15% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 2.97% higher. Alibaba is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Alibaba is holding a Forward P/E ratio of 13.93. This represents a discount compared to its industry's average Forward P/E of 27.16.
Also, we should mention that BABA has a PEG ratio of 1.48. 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. The Internet - Commerce industry currently had an average PEG ratio of 1.45 as of yesterday's close.
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 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.