Alibaba (BABA) Gains As Market Dips: What You Should Know
Alibaba (BABA) closed at $177.78 in the latest trading session, marking a +0.62% move from the prior day. This change outpaced the S&P 500's 0.01% loss on the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.19%.
Coming into today, shares of the online retailer had gained 8.92% in the past month. In that same time, the Retail-Wholesale sector gained 6.63%, while the S&P 500 gained 3.61%.
Wall Street will be looking for positivity from BABA as it approaches its next earnings report date. The company is expected to report EPS of $1.56, up 11.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.82 billion, up 35.65% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.19 per share and revenue of $73.46 billion. These totals would mark changes of +25.7% and +32.09%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for BABA. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 15.28% higher. BABA is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note BABA's current valuation metrics, including its Forward P/E ratio of 24.58. Its industry sports an average Forward P/E of 25.64, so we one might conclude that BABA is trading at a discount comparatively.
Meanwhile, BABA's PEG ratio is currently 0.88. 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. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.55 based on yesterday's closing prices.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 44% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.