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Alibaba (BABA) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest close session, Alibaba (BABA - Free Report) was down 1.49% at $105.85. The stock's performance was behind the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.
The online retailer's stock has dropped by 3.9% in the past month, exceeding the Retail-Wholesale sector's loss of 4.61% and lagging the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.49, signifying a 144.26% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $40.63 billion, up 16.73% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.41 per share and revenue of $166.96 billion, which would represent changes of +64.78% and +14.83%, respectively, from the prior 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. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 1.93% lower. At present, Alibaba boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Alibaba is presently being traded at a Forward P/E ratio of 16.77. For comparison, its industry has an average Forward P/E of 15.14, which means Alibaba is trading at a premium to the group.
One should further note that BABA currently holds a PEG ratio of 1.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 1.15 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 23% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
View the Zacks #1 Rank List
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Alibaba (BABA) Stock Drops Despite Market Gains: Important Facts to Note
In the latest close session, Alibaba (BABA - Free Report) was down 1.49% at $105.85. The stock's performance was behind the S&P 500's daily gain of 0.73%. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 1.19%.
The online retailer's stock has dropped by 3.9% in the past month, exceeding the Retail-Wholesale sector's loss of 4.61% and lagging the S&P 500's gain of 0.55%.
Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.49, signifying a 144.26% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $40.63 billion, up 16.73% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.41 per share and revenue of $166.96 billion, which would represent changes of +64.78% and +14.83%, respectively, from the prior 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. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 1.93% lower. At present, Alibaba boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Alibaba is presently being traded at a Forward P/E ratio of 16.77. For comparison, its industry has an average Forward P/E of 15.14, which means Alibaba is trading at a premium to the group.
One should further note that BABA currently holds a PEG ratio of 1.3. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 1.15 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 191, finds itself in the bottom 23% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.