Alibaba (BABA) Stock Moves -0.11%: What You Should Know
In the latest trading session, Alibaba (BABA) closed at $92.10, marking a -0.11% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.37%. Elsewhere, the Dow lost 0.32%, while the tech-heavy Nasdaq lost 1.18%.
Coming into today, shares of the online retailer had gained 7.5% in the past month. In that same time, the Retail-Wholesale sector gained 5.52%, while the S&P 500 gained 7.18%.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. In that report, analysts expect Alibaba to post earnings of $1.87 per share. This would mark year-over-year growth of 6.86%. Our most recent consensus estimate is calling for quarterly revenue of $31.27 billion, up 1.89% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.99 per share and revenue of $135.54 billion, which would represent changes of +0.63% and +7.53%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Alibaba. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. The Zacks Consensus EPS estimate has moved 5.84% lower within the past month. Alibaba is currently a Zacks Rank #3 (Hold).
Digging into valuation, Alibaba currently has a Forward P/E ratio of 11.55. This represents a discount compared to its industry's average Forward P/E of 19.52.
We can also see that BABA currently has a PEG ratio of 0.85. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Commerce stocks are, on average, holding a PEG ratio of 1.03 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 74, which puts it in the top 30% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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