Alibaba (BABA) ended the recent trading session at $166.51, demonstrating a +2.15% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.33%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 0.59%.
Heading into today, shares of the online retailer had lost 1.99% over the past month, outpacing the Retail-Wholesale sector's loss of 3.93% and lagging the S&P 500's loss of 0%.
Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. In that report, analysts expect Alibaba to post earnings of $1.91 per share. This would mark a year-over-year decline of 34.81%. Meanwhile, the latest consensus estimate predicts the revenue to be $41.26 billion, indicating a 7.49% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.96 per share and revenue of $147.35 billion, which would represent changes of -33.85% and +6.67%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Alibaba. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 1.77% lower. Alibaba is holding a Zacks Rank of #5 (Strong Sell) right now.
Digging into valuation, Alibaba currently has a Forward P/E ratio of 27.37. This signifies a premium in comparison to the average Forward P/E of 15.2 for its industry.
Meanwhile, BABA's PEG ratio is currently 3.17. 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 Internet - Commerce industry currently had an average PEG ratio of 0.95 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 171, which puts it in the bottom 31% 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 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 ReportThis article originally published on Zacks Investment Research (zacks.com).
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