In the latest trading session, Alibaba (BABA - Free Report) closed at $179.68, marking a -0.97% move from the previous day. This move lagged the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.26%.
Prior to today's trading, shares of the online retailer had lost 3.08% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.34% and the S&P 500's loss of 0.19% in that time.
BABA will be looking to display strength as it nears its next earnings release, which is expected to be May 15, 2019. In that report, analysts expect BABA to post earnings of $1.05 per share. This would mark year-over-year growth of 15.38%. Our most recent consensus estimate is calling for quarterly revenue of $13.49 billion, up 36.59% from the year-ago period.
Any recent changes to analyst estimates for BABA should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 4.63% lower within the past month. BABA currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that BABA has a Forward P/E ratio of 27.73 right now. This valuation marks a discount compared to its industry's average Forward P/E of 28.65.
Meanwhile, BABA's PEG ratio is currently 1.12. 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 was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% 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.