Alibaba (BABA) closed the most recent trading day at $124.36, moving +1.16% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.43%. Meanwhile, the Dow experienced a drop of 0.77%, and the technology-dominated Nasdaq saw a decrease of 0.22%.
Shares of the online retailer witnessed a gain of 2.42% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 2.21%, and underperforming the S&P 500's gain of 2.65%.
The investment community will be paying close attention to the earnings performance of Alibaba in its upcoming release. The company is slated to reveal its earnings on August 29, 2025. The company is forecasted to report an EPS of $2.13, showcasing a 5.75% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $34.26 billion, indicating a 2.37% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.58 per share and a revenue of $141.93 billion, signifying shifts of -4.77% and +2.75%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, there's been no change in the Zacks Consensus EPS estimate. At present, Alibaba boasts a Zacks Rank of #5 (Strong Sell).
Looking at valuation, Alibaba is presently trading at a Forward P/E ratio of 14.34. This signifies a discount in comparison to the average Forward P/E of 19.83 for its industry.
Also, we should mention that BABA has a PEG ratio of 1.65. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Commerce industry stood at 1.58 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 36% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Alibaba Group Holding Limited (BABA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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