Yahoo Finance Alibaba (BABA) Rises As Market Takes a Dip: Key Facts
In the latest market close, Alibaba (BABA) reached $74.75, with a +1.46% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.31%. Meanwhile, the Dow gained 0.67%, and the Nasdaq, a tech-heavy index, lost 1.09%.
The the stock of online retailer has fallen by 9.34% in the past month, lagging the Retail-Wholesale sector's gain of 1.85% and the S&P 500's gain of 2.73%.
The upcoming earnings release of Alibaba will be of great interest to investors. In that report, analysts expect Alibaba to post earnings of $2.24 per share. This would mark a year-over-year decline of 6.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $34.95 billion, up 8.22% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.20 per share and a revenue of $138.63 billion, signifying shifts of -4.87% and +6.23%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained steady. Alibaba currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Alibaba is currently exchanging hands at a Forward P/E ratio of 8.98. For comparison, its industry has an average Forward P/E of 20.63, which means Alibaba is trading at a discount to the group.
It's also important to note that BABA currently trades at a PEG ratio of 0.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 0.95.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
