We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Alibaba (BABA) Stock Sinks As Market Gains: What You Should Know
Read MoreHide Full Article
Alibaba (BABA - Free Report) closed at $69.71 in the latest trading session, marking a -0.14% move from the prior day. This move lagged the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 1.31%, while the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the online retailer had lost 14.07% over the past month, lagging the Retail-Wholesale sector's loss of 6.89% and the S&P 500's loss of 0.41% in that time.
Investors will be hoping for strength from Alibaba as it approaches its next earnings release, which is expected to be November 17, 2022. On that day, Alibaba is projected to report earnings of $1.67 per share, which would represent a year-over-year decline of 4.02%. Meanwhile, our latest consensus estimate is calling for revenue of $31.07 billion, down 0.26% from the prior-year quarter.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $7.38 per share and revenue of $133.58 billion. These results would represent year-over-year changes of -11.19% and +0.23%, respectively.
Investors should also note any 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. 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 5.33% lower. Alibaba is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 9.46 right now. For comparison, its industry has an average Forward P/E of 23.39, which means Alibaba is trading at a discount to the group.
Also, we should mention that BABA has a PEG ratio of 0.58. 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 1.22 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Alibaba (BABA) Stock Sinks As Market Gains: What You Should Know
Alibaba (BABA - Free Report) closed at $69.71 in the latest trading session, marking a -0.14% move from the prior day. This move lagged the S&P 500's daily gain of 0.96%. Elsewhere, the Dow gained 1.31%, while the tech-heavy Nasdaq lost 0.14%.
Heading into today, shares of the online retailer had lost 14.07% over the past month, lagging the Retail-Wholesale sector's loss of 6.89% and the S&P 500's loss of 0.41% in that time.
Investors will be hoping for strength from Alibaba as it approaches its next earnings release, which is expected to be November 17, 2022. On that day, Alibaba is projected to report earnings of $1.67 per share, which would represent a year-over-year decline of 4.02%. Meanwhile, our latest consensus estimate is calling for revenue of $31.07 billion, down 0.26% from the prior-year quarter.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $7.38 per share and revenue of $133.58 billion. These results would represent year-over-year changes of -11.19% and +0.23%, respectively.
Investors should also note any 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. 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 5.33% lower. Alibaba is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 9.46 right now. For comparison, its industry has an average Forward P/E of 23.39, which means Alibaba is trading at a discount to the group.
Also, we should mention that BABA has a PEG ratio of 0.58. 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 1.22 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.