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Why Alibaba (BABA) Dipped More Than Broader Market Today
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Alibaba (BABA - Free Report) ended the recent trading session at $68.93, demonstrating a -0.76% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.56%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Prior to today's trading, shares of the online retailer had lost 7.87% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.08% and the S&P 500's gain of 1.2% in that time.
Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.73, marking a 2.15% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $37.68 billion, reflecting a 4.89% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.86 per share and revenue of $132.68 billion, indicating changes of +11.59% and +5.26%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alibaba. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.08% downward. At present, Alibaba boasts a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Alibaba is currently exchanging hands at a Forward P/E ratio of 7.84. This expresses a discount compared to the average Forward P/E of 19.85 of its industry.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 35% of over 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why Alibaba (BABA) Dipped More Than Broader Market Today
Alibaba (BABA - Free Report) ended the recent trading session at $68.93, demonstrating a -0.76% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.56%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 0.59%.
Prior to today's trading, shares of the online retailer had lost 7.87% over the past month. This has lagged the Retail-Wholesale sector's gain of 1.08% and the S&P 500's gain of 1.2% in that time.
Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $2.73, marking a 2.15% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $37.68 billion, reflecting a 4.89% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.86 per share and revenue of $132.68 billion, indicating changes of +11.59% and +5.26%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alibaba. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.08% downward. At present, Alibaba boasts a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Alibaba is currently exchanging hands at a Forward P/E ratio of 7.84. This expresses a discount compared to the average Forward P/E of 19.85 of its industry.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 35% of over 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.