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Alibaba (BABA) Beats Stock Market Upswing: What Investors Need to Know
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In the latest trading session, Alibaba (BABA - Free Report) closed at $75.20, marking a +1.59% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq increased by 0.36%.
The online retailer's stock has dropped by 2.41% in the past month, falling short of the Retail-Wholesale sector's gain of 0.71% and the S&P 500's gain of 2.4%.
Market participants will be closely following the financial results of Alibaba in its upcoming release. In that report, analysts expect Alibaba to post earnings of $2.73 per share. This would mark a year-over-year decline of 2.15%. Simultaneously, our latest consensus estimate expects the revenue to be $37.68 billion, showing a 4.89% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.86 per share and a revenue of $132.68 billion, representing changes of +11.59% and +5.26%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.08% downward. Alibaba currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Alibaba is currently trading at a Forward P/E ratio of 8.36. For comparison, its industry has an average Forward P/E of 19.59, which means Alibaba is trading at a discount to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 114, finds itself in the top 46% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Alibaba (BABA) Beats Stock Market Upswing: What Investors Need to Know
In the latest trading session, Alibaba (BABA - Free Report) closed at $75.20, marking a +1.59% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.08%. On the other hand, the Dow registered a loss of 0.26%, and the technology-centric Nasdaq increased by 0.36%.
The online retailer's stock has dropped by 2.41% in the past month, falling short of the Retail-Wholesale sector's gain of 0.71% and the S&P 500's gain of 2.4%.
Market participants will be closely following the financial results of Alibaba in its upcoming release. In that report, analysts expect Alibaba to post earnings of $2.73 per share. This would mark a year-over-year decline of 2.15%. Simultaneously, our latest consensus estimate expects the revenue to be $37.68 billion, showing a 4.89% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.86 per share and a revenue of $132.68 billion, representing changes of +11.59% and +5.26%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.08% downward. Alibaba currently has a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Alibaba is currently trading at a Forward P/E ratio of 8.36. For comparison, its industry has an average Forward P/E of 19.59, which means Alibaba is trading at a discount to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 114, finds itself in the top 46% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.