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Alibaba (BABA) Gains As Market Dips: What You Should Know
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Alibaba (BABA - Free Report) closed at $84.30 in the latest trading session, marking a +0.27% move from the prior day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 9.78%.
Prior to today's trading, shares of the online retailer had lost 3.03% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.88% and the S&P 500's gain of 4.16% in that time.
Alibaba will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alibaba to post earnings of $1.87 per share. This would mark year-over-year growth of 6.86%. Meanwhile, our latest consensus estimate is calling for revenue of $31.27 billion, up 1.89% from the prior-year quarter.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $7.99 per share and revenue of $135.54 billion. These results would represent year-over-year changes of +0.63% and +7.53%, 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. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 0.99% higher. Alibaba is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Alibaba is holding a Forward P/E ratio of 10.53. For comparison, its industry has an average Forward P/E of 20.36, which means Alibaba is trading at a discount to the group.
Also, we should mention that BABA has a PEG ratio of 0.77. 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 1.16 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Alibaba (BABA) Gains As Market Dips: What You Should Know
Alibaba (BABA - Free Report) closed at $84.30 in the latest trading session, marking a +0.27% move from the prior day. This change outpaced the S&P 500's 0.2% loss on the day. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 9.78%.
Prior to today's trading, shares of the online retailer had lost 3.03% over the past month. This has lagged the Retail-Wholesale sector's gain of 6.88% and the S&P 500's gain of 4.16% in that time.
Alibaba will be looking to display strength as it nears its next earnings release. In that report, analysts expect Alibaba to post earnings of $1.87 per share. This would mark year-over-year growth of 6.86%. Meanwhile, our latest consensus estimate is calling for revenue of $31.27 billion, up 1.89% from the prior-year quarter.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $7.99 per share and revenue of $135.54 billion. These results would represent year-over-year changes of +0.63% and +7.53%, 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. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 0.99% higher. Alibaba is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Alibaba is holding a Forward P/E ratio of 10.53. For comparison, its industry has an average Forward P/E of 20.36, which means Alibaba is trading at a discount to the group.
Also, we should mention that BABA has a PEG ratio of 0.77. 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 1.16 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 82, putting it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.