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Alibaba (BABA) Registers a Bigger Fall Than the Market: Important Facts to Note
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Alibaba (BABA - Free Report) ended the recent trading session at $99.54, demonstrating a -1.41% change from the preceding day's closing price. This change lagged the S&P 500's 0.31% loss on the day. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 1.38%.
Shares of the online retailer witnessed a loss of 6.12% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.86%, and the S&P 500's gain of 0.87%.
Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.46, signifying a 139.34% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $40.35 billion, reflecting a 15.93% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.37 per share and revenue of $166.54 billion. These totals would mark changes of +63.75% and +14.54%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Alibaba. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about 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, 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 0.69% lower. Alibaba currently has a Zacks Rank of #3 (Hold).
Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 15.86. This represents a premium compared to its industry average Forward P/E of 15.01.
Meanwhile, BABA's PEG ratio is currently 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
View the Zacks #1 Rank List
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Alibaba (BABA) Registers a Bigger Fall Than the Market: Important Facts to Note
Alibaba (BABA - Free Report) ended the recent trading session at $99.54, demonstrating a -1.41% change from the preceding day's closing price. This change lagged the S&P 500's 0.31% loss on the day. Meanwhile, the Dow experienced a drop of 0.25%, and the technology-dominated Nasdaq saw a decrease of 1.38%.
Shares of the online retailer witnessed a loss of 6.12% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.86%, and the S&P 500's gain of 0.87%.
Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.46, signifying a 139.34% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $40.35 billion, reflecting a 15.93% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.37 per share and revenue of $166.54 billion. These totals would mark changes of +63.75% and +14.54%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Alibaba. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about 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, 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 0.69% lower. Alibaba currently has a Zacks Rank of #3 (Hold).
Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 15.86. This represents a premium compared to its industry average Forward P/E of 15.01.
Meanwhile, BABA's PEG ratio is currently 1.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.19 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 29% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.