Yahoo Finance Alibaba (BABA) Increases Yet Falls Behind Market: What Investors Need to Know
Alibaba (BABA) closed the latest trading day at $102.17, indicating a +0.32% change from the previous session's end. This change lagged the S&P 500's 0.47% gain on the day. Meanwhile, the Dow experienced a rise of 0.79%, and the technology-dominated Nasdaq saw an increase of 0.28%.
Coming into today, shares of the online retailer had gained 20.24% in the past month. In that same time, the Retail-Wholesale sector gained 3.09%, while the S&P 500 gained 3.48%.
The investment community will be closely monitoring the performance of Alibaba in its forthcoming earnings report. The company is expected to report EPS of $2.09, down 2.34% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $33.25 billion, up 7.93% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.94 per share and revenue of $140.46 billion. These totals would mark changes of +3.71% and +7.63%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Alibaba. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.89% rise in the Zacks Consensus EPS estimate. As of now, Alibaba holds a Zacks Rank of #2 (Buy).
Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 11.39. For comparison, its industry has an average Forward P/E of 23.62, which means Alibaba is trading at a discount to the group.
One should further note that BABA currently holds a PEG ratio of 0.43. 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. The Internet - Commerce industry currently had an average PEG ratio of 1.03 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 52, positioning it in the top 21% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
