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Why Alibaba (BABA) Dipped More Than Broader Market Today
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Alibaba (BABA - Free Report) ended the recent trading session at $105.70, demonstrating a -1.21% change from the preceding day's closing price. This change lagged the S&P 500's 0.47% loss on the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 1.25%.
The online retailer's stock has dropped by 2.19% in the past month, exceeding the Retail-Wholesale sector's loss of 2.73% and lagging the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of Alibaba in its upcoming release. The company's earnings per share (EPS) are projected to be $1.49, reflecting a 144.26% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $40.63 billion, showing a 16.73% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.41 per share and revenue of $166.96 billion, indicating changes of +64.78% and +14.83%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alibaba. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.93% lower. As of now, Alibaba holds a Zacks Rank of #3 (Hold).
Looking at valuation, Alibaba is presently trading at a Forward P/E ratio of 16.7. This signifies a premium in comparison to the average Forward P/E of 14.86 for its industry.
Investors should also note that BABA has a PEG ratio of 1.3 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.19.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 200, placing it within the bottom 19% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Why Alibaba (BABA) Dipped More Than Broader Market Today
Alibaba (BABA - Free Report) ended the recent trading session at $105.70, demonstrating a -1.21% change from the preceding day's closing price. This change lagged the S&P 500's 0.47% loss on the day. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 1.25%.
The online retailer's stock has dropped by 2.19% in the past month, exceeding the Retail-Wholesale sector's loss of 2.73% and lagging the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of Alibaba in its upcoming release. The company's earnings per share (EPS) are projected to be $1.49, reflecting a 144.26% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $40.63 billion, showing a 16.73% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.41 per share and revenue of $166.96 billion, indicating changes of +64.78% and +14.83%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alibaba. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.93% lower. As of now, Alibaba holds a Zacks Rank of #3 (Hold).
Looking at valuation, Alibaba is presently trading at a Forward P/E ratio of 16.7. This signifies a premium in comparison to the average Forward P/E of 14.86 for its industry.
Investors should also note that BABA has a PEG ratio of 1.3 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Internet - Commerce industry had an average PEG ratio of 1.19.
The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 200, placing it within the bottom 19% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.