Alibaba (BABA – Free Report) closed the most recent trading day at $143.20, moving +0.32% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 1.08% for the day. Meanwhile, the Dow experienced a rise of 0.92%, and the technology-dominated Nasdaq saw an increase of 1.41%.
The online retailer’s shares have seen an increase of 12.48% over the last month, surpassing the Retail-Wholesale sector’s loss of 11.45% and the S&P 500’s loss of 8.26%.
Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $1.37, signifying a 2.14% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $33.21 billion, reflecting an 8.07% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.80 per share and a revenue of $138.29 billion, indicating changes of +2.09% and +5.97%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alibaba. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.67% upward. Alibaba is holding a Zacks Rank of #2 (Buy) right now.
Looking at valuation, Alibaba is presently trading at a Forward P/E ratio of 16.22. This represents a discount compared to its industry’s average Forward P/E of 21.28.
One should further note that BABA currently holds a PEG ratio of 0.54. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. The Internet – Commerce industry currently had an average PEG ratio of 1.13 as of yesterday’s close.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 78, putting it in the top 32% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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