In the latest trading session, Alibaba (BABA - Free Report) closed at $178.19, marking a -1.36% move from the previous day. This change lagged the S&P 500's 0.03% gain on the day. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq added 0.15%.
Heading into today, shares of the online retailer had lost 2.26% over the past month, lagging the Retail-Wholesale sector's gain of 3.57% and the S&P 500's gain of 2.98% in that time.
Wall Street will be looking for positivity from BABA as it approaches its next earnings report date. This is expected to be November 1, 2018. On that day, BABA is projected to report earnings of $1.33 per share, which would represent year-over-year growth of 3.1%. Our most recent consensus estimate is calling for quarterly revenue of $13.05 billion, up 57.5% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.15 per share and revenue of $58.43 billion. These totals would mark changes of +17.37% and +52.48%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for BABA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 4.18% lower within the past month. BABA is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, BABA is currently trading at a Forward P/E ratio of 29.37. Its industry sports an average Forward P/E of 30.49, so we one might conclude that BABA is trading at a discount comparatively.
It is also worth noting that BABA currently has a PEG ratio of 0.9. 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. BABA's industry had an average PEG ratio of 2.36 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 197, which puts it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.