Alibaba (BABA - Free Report) closed the most recent trading day at $164.75, moving -0.4% from the previous trading session. This change lagged the S&P 500's 0.03% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the online retailer had lost 3.76% over the past month. This has lagged the Retail-Wholesale sector's gain of 3.41% and the S&P 500's gain of 3.1% in that time.
Investors will be hoping for strength from BABA as it approaches its next earnings release, which is expected to be November 1, 2018. In that report, analysts expect BABA to post earnings of $1.25 per share. This would mark a year-over-year decline of 3.1%. Our most recent consensus estimate is calling for quarterly revenue of $13.03 billion, up 57.25% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.69 per share and revenue of $58.11 billion. These totals would mark changes of +8.59% and +51.63%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BABA. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 15.93% lower within the past month. BABA is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, BABA is currently trading at a Forward P/E ratio of 29.11. This represents a premium compared to its industry's average Forward P/E of 28.95.
Meanwhile, BABA's PEG ratio is currently 0.84. 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 2.08 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 20% 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.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.