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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 $101.54, moving -1.17% from the previous trading session. This change lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 2.19%.
Prior to today's trading, shares of the online retailer had gained 23.84% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.03% and the S&P 500's gain of 3.13% in that time.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. In that report, analysts expect Alibaba to post earnings of $1.59 per share. This would mark year-over-year growth of 27.2%. Our most recent consensus estimate is calling for quarterly revenue of $31.08 billion, down 3.46% from the year-ago period.
Investors might also notice 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 0.63% lower. Alibaba is currently a Zacks Rank #3 (Hold).
Digging into valuation, Alibaba currently has a Forward P/E ratio of 12.37. This represents a discount compared to its industry's average Forward P/E of 21.09.
We can also see that BABA currently has a PEG ratio of 0.97. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.15 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 79, putting it in the top 32% 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.
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 $101.54, moving -1.17% from the previous trading session. This change lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 2.19%.
Prior to today's trading, shares of the online retailer had gained 23.84% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.03% and the S&P 500's gain of 3.13% in that time.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. In that report, analysts expect Alibaba to post earnings of $1.59 per share. This would mark year-over-year growth of 27.2%. Our most recent consensus estimate is calling for quarterly revenue of $31.08 billion, down 3.46% from the year-ago period.
Investors might also notice 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 0.63% lower. Alibaba is currently a Zacks Rank #3 (Hold).
Digging into valuation, Alibaba currently has a Forward P/E ratio of 12.37. This represents a discount compared to its industry's average Forward P/E of 21.09.
We can also see that BABA currently has a PEG ratio of 0.97. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.15 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 79, putting it in the top 32% 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.