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Alibaba (BABA) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Alibaba (BABA - Free Report) closed at $122.05, marking a -1.36% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Prior to today's trading, shares of the online retailer had lost 7.16% lagged the Retail-Wholesale sector's loss of 3.81% and the S&P 500's loss of 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. In that report, analysts expect Alibaba to post earnings of $1.53 per share. This would mark a year-over-year decline of 11.56%. Meanwhile, the latest consensus estimate predicts the revenue to be $35.35 billion, indicating a 8.49% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.26 per share and revenue of $148.66 billion. These totals would mark changes of -41.62% and +7.62%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Alibaba. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 16.8% lower. As of now, Alibaba holds a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Alibaba is holding a Forward P/E ratio of 16.69. This expresses a premium compared to the average Forward P/E of 15.83 of its industry.
We can additionally observe that BABA currently boasts a PEG ratio of 1.93. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 0.9.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 177, this industry ranks in the bottom 28% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Alibaba (BABA) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Alibaba (BABA - Free Report) closed at $122.05, marking a -1.36% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.11%. Meanwhile, the Dow experienced a drop of 0.13%, and the technology-dominated Nasdaq saw an increase of 0.18%.
Prior to today's trading, shares of the online retailer had lost 7.16% lagged the Retail-Wholesale sector's loss of 3.81% and the S&P 500's loss of 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. In that report, analysts expect Alibaba to post earnings of $1.53 per share. This would mark a year-over-year decline of 11.56%. Meanwhile, the latest consensus estimate predicts the revenue to be $35.35 billion, indicating a 8.49% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.26 per share and revenue of $148.66 billion. These totals would mark changes of -41.62% and +7.62%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Alibaba. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 16.8% lower. As of now, Alibaba holds a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Alibaba is holding a Forward P/E ratio of 16.69. This expresses a premium compared to the average Forward P/E of 15.83 of its industry.
We can additionally observe that BABA currently boasts a PEG ratio of 1.93. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 0.9.
The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 177, this industry ranks in the bottom 28% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.