Alibaba (BABA - Free Report) closed at $178.77 in the latest trading session, marking a +1.42% move from the prior day. This move outpaced the S&P 500's daily loss of 0.08%. Elsewhere, the Dow gained 0.06%, while the tech-heavy Nasdaq lost 0.07%.
Prior to today's trading, shares of the online retailer had gained 2.68% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.51% and the S&P 500's gain of 0.52% in that time.
Wall Street will be looking for positivity from BABA as it approaches its next earnings report date. The company is expected to report EPS of $1.07, up 17.58% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.50 billion, up 36.7% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.42 per share and revenue of $55.31 billion. These totals would mark changes of +3.44% and +44.33%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for BABA. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BABA is currently a Zacks Rank #3 (Hold).
Digging into valuation, BABA currently has a Forward P/E ratio of 32.5. Its industry sports an average Forward P/E of 27.96, so we one might conclude that BABA is trading at a premium comparatively.
Also, we should mention that BABA has a PEG ratio of 1.16. 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 2.08 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 203, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.