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Alibaba (BABA) Exceeds Market Returns: Some Facts to Consider
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Alibaba (BABA - Free Report) closed at $127.73 in the latest trading session, marking a +1.92% move from the prior day. This change outpaced the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 0.83%.
Shares of the online retailer have depreciated by 8.05% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.96%, and the S&P 500's gain of 0.8%.
Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.53, marking a 11.56% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $35.35 billion, up 8.49% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.26 per share and a revenue of $148.76 billion, demonstrating changes of -41.62% and +7.69%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 16.52% lower. Right now, Alibaba possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Alibaba is presently being traded at a Forward P/E ratio of 16.89. This indicates a premium in contrast to its industry's Forward P/E of 16.2.
We can also see that BABA currently has a PEG ratio of 1.95. 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. The Internet - Commerce was holding an average PEG ratio of 0.92 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 33% of all 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.
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) Exceeds Market Returns: Some Facts to Consider
Alibaba (BABA - Free Report) closed at $127.73 in the latest trading session, marking a +1.92% move from the prior day. This change outpaced the S&P 500's 0.62% gain on the day. At the same time, the Dow added 0.58%, and the tech-heavy Nasdaq gained 0.83%.
Shares of the online retailer have depreciated by 8.05% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.96%, and the S&P 500's gain of 0.8%.
Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.53, marking a 11.56% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $35.35 billion, up 8.49% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $5.26 per share and a revenue of $148.76 billion, demonstrating changes of -41.62% and +7.69%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 16.52% lower. Right now, Alibaba possesses a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Alibaba is presently being traded at a Forward P/E ratio of 16.89. This indicates a premium in contrast to its industry's Forward P/E of 16.2.
We can also see that BABA currently has a PEG ratio of 1.95. 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. The Internet - Commerce was holding an average PEG ratio of 0.92 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 164, which puts it in the bottom 33% of all 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.