Alibaba (BABA) Dips More Than Broader Markets: What You Should Know
Alibaba (BABA) closed at $105.45 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's daily loss of 0.61%. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq lost 0.67%.
Coming into today, shares of the online retailer had lost 1% in the past month. In that same time, the Retail-Wholesale sector gained 10.67%, while the S&P 500 gained 8.32%.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. On that day, Alibaba is projected to report earnings of $2.25 per share, which would represent a year-over-year decline of 15.09%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.85 billion, down 5.83% from the year-ago period.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $7.20 per share and revenue of $127.62 billion. These results would represent year-over-year changes of -13.36% and -4.24%, respectively.
Any recent changes to analyst estimates for Alibaba 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% higher. Alibaba is currently a Zacks Rank #1 (Strong Buy).
Looking at its valuation, Alibaba is holding a Forward P/E ratio of 14.77. This represents a discount compared to its industry's average Forward P/E of 21.6.
It is also worth noting that BABA currently has a PEG ratio of 1.67. 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. BABA's industry had an average PEG ratio of 1.63 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 34, which puts it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
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