Alibaba (BABA) ended the recent trading session at $163.65, demonstrating a -2.81% change from the preceding day's closing price. This change lagged the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 1.43%.
The stock of online retailer has risen by 7.76% in the past month, leading the Retail-Wholesale sector's gain of 6.19% and the S&P 500's gain of 1.8%.
Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.91, marking a 34.81% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $41.26 billion, reflecting a 7.49% rise from the equivalent quarter last year.
BABA's full-year Zacks Consensus Estimates are calling for earnings of $5.98 per share and revenue of $147.21 billion. These results would represent year-over-year changes of -33.63% and +6.57%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Alibaba. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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.
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. Within the past 30 days, our consensus EPS projection has moved 6.93% lower. Right now, Alibaba possesses a Zacks Rank of #5 (Strong Sell).
Looking at its valuation, Alibaba is holding a Forward P/E ratio of 28.18. This denotes a premium relative to the industry average Forward P/E of 16.34.
Investors should also note that BABA has a PEG ratio of 3.26 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BABA's industry had an average PEG ratio of 1.07 as of yesterday's close.
The Internet - Commerce industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 179, positioning it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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