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Alibaba (BABA) Stock Slides as Market Rises: Facts to Know Before You Trade
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In the latest trading session, Alibaba (BABA - Free Report) closed at $72.88, marking a -0.18% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.41% for the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 2.2%.
Shares of the online retailer witnessed a gain of 1.21% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.51% and the S&P 500's gain of 2.9%.
The upcoming earnings release of Alibaba will be of great interest to investors. The company is forecasted to report an EPS of $2.83, showcasing a 1.43% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $37.83 billion, showing a 5.32% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.12 per share and revenue of $133.01 billion, which would represent changes of +14.86% and +3.98%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alibaba. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.4% higher. Alibaba currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Alibaba is currently exchanging hands at a Forward P/E ratio of 8.01. This valuation marks a discount compared to its industry's average Forward P/E of 19.92.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Alibaba (BABA) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest trading session, Alibaba (BABA - Free Report) closed at $72.88, marking a -0.18% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.41% for the day. Meanwhile, the Dow gained 0.58%, and the Nasdaq, a tech-heavy index, added 2.2%.
Shares of the online retailer witnessed a gain of 1.21% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 2.51% and the S&P 500's gain of 2.9%.
The upcoming earnings release of Alibaba will be of great interest to investors. The company is forecasted to report an EPS of $2.83, showcasing a 1.43% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $37.83 billion, showing a 5.32% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.12 per share and revenue of $133.01 billion, which would represent changes of +14.86% and +3.98%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alibaba. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.4% higher. Alibaba currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Alibaba is currently exchanging hands at a Forward P/E ratio of 8.01. This valuation marks a discount compared to its industry's average Forward P/E of 19.92.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 70, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.