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Alibaba (BABA) Gains But Lags Market: What You Should Know
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Alibaba (BABA - Free Report) closed at $104.79 in the latest trading session, marking a +1.1% move from the prior day. This move lagged the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 1.11%, while the tech-heavy Nasdaq added 11.35%.
Heading into today, shares of the online retailer had lost 11.42% over the past month, lagging the Retail-Wholesale sector's gain of 1.99% and the S&P 500's gain of 4.49% in that time.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. This is expected to be February 23, 2023. The company is expected to report EPS of $2.29, down 13.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.48 billion, down 6.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.31 per share and revenue of $127.28 billion, which would represent changes of -12.03% and -4.49%, respectively, from the prior year.
Any recent changes to analyst estimates for Alibaba should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.92% higher. Alibaba is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Alibaba is currently trading at a Forward P/E ratio of 14.17. For comparison, its industry has an average Forward P/E of 19.62, which means Alibaba is trading at a discount to the group.
Investors should also note that BABA has a PEG ratio of 1.6 right now. 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 was holding an average PEG ratio of 1.57 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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) Gains But Lags Market: What You Should Know
Alibaba (BABA - Free Report) closed at $104.79 in the latest trading session, marking a +1.1% move from the prior day. This move lagged the S&P 500's daily gain of 1.15%. Elsewhere, the Dow gained 1.11%, while the tech-heavy Nasdaq added 11.35%.
Heading into today, shares of the online retailer had lost 11.42% over the past month, lagging the Retail-Wholesale sector's gain of 1.99% and the S&P 500's gain of 4.49% in that time.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. This is expected to be February 23, 2023. The company is expected to report EPS of $2.29, down 13.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.48 billion, down 6.81% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.31 per share and revenue of $127.28 billion, which would represent changes of -12.03% and -4.49%, respectively, from the prior year.
Any recent changes to analyst estimates for Alibaba should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 1.92% higher. Alibaba is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Alibaba is currently trading at a Forward P/E ratio of 14.17. For comparison, its industry has an average Forward P/E of 19.62, which means Alibaba is trading at a discount to the group.
Investors should also note that BABA has a PEG ratio of 1.6 right now. 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 was holding an average PEG ratio of 1.57 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.