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Alibaba (BABA) Increases Despite Market Slip: Here's What You Need to Know

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Alibaba (BABA - Free Report) closed at $157.71 in the latest trading session, marking a +2.54% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.92%. At the same time, the Dow lost 1.18%, and the tech-heavy Nasdaq lost 0.84%.

The online retailer's stock has dropped by 7.93% in the past month, falling short of the Retail-Wholesale sector's gain of 0.48% and the S&P 500's gain of 1.48%.

Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 25, 2025. The company's earnings per share (EPS) are projected to be $0.66, reflecting a 69.3% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $34.43 billion, up 2.17% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.57 per share and a revenue of $144.67 billion, representing changes of -27.08% and +4.73%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Alibaba. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Alibaba is currently a Zacks Rank #5 (Strong Sell).

Valuation is also important, so investors should note that Alibaba has a Forward P/E ratio of 23.4 right now. For comparison, its industry has an average Forward P/E of 22.18, which means Alibaba is trading at a premium to the group.

We can additionally observe that BABA currently boasts a PEG ratio of 1.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.44.

The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 148, finds itself in the bottom 41% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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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