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Alibaba (BABA) Gains But Lags Market: What You Should Know
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In the latest trading session, Alibaba (BABA - Free Report) closed at $86.89, marking a +0.14% move from the previous day. The stock lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.
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 3.11% and the S&P 500's gain of 4.31% in that time.
Investors will be hoping for strength from Alibaba as it approaches its next earnings release. The company is expected to report EPS of $1.87, up 6.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $31.27 billion, up 1.89% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.99 per share and revenue of $135.54 billion. These totals would mark changes of +0.63% and +7.53%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Alibaba. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.74% lower. Alibaba is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Alibaba is currently trading at a Forward P/E ratio of 10.87. This valuation marks a discount compared to its industry's average Forward P/E of 19.31.
Investors should also note that BABA has a PEG ratio of 0.8 right now. 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. BABA's industry had an average PEG ratio of 0.96 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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.
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Alibaba (BABA) Gains But Lags Market: What You Should Know
In the latest trading session, Alibaba (BABA - Free Report) closed at $86.89, marking a +0.14% move from the previous day. The stock lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 1.26%.
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 3.11% and the S&P 500's gain of 4.31% in that time.
Investors will be hoping for strength from Alibaba as it approaches its next earnings release. The company is expected to report EPS of $1.87, up 6.86% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $31.27 billion, up 1.89% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.99 per share and revenue of $135.54 billion. These totals would mark changes of +0.63% and +7.53%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Alibaba. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 0.74% lower. Alibaba is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Alibaba is currently trading at a Forward P/E ratio of 10.87. This valuation marks a discount compared to its industry's average Forward P/E of 19.31.
Investors should also note that BABA has a PEG ratio of 0.8 right now. 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. BABA's industry had an average PEG ratio of 0.96 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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.