In the latest market close, Alibaba (BABA) reached $86.08, with a +0.65% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.04%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 0.05%.
The online retailer's shares have seen a decrease of 1.24% over the last month, not keeping up with the Retail-Wholesale sector's gain of 2.87% and the S&P 500's gain of 1.05%.
The investment community will be paying close attention to the earnings performance of Alibaba in its upcoming release. In that report, analysts expect Alibaba to post earnings of $3.03 per share. This would mark year-over-year growth of 13.48%. Simultaneously, our latest consensus estimate expects the revenue to be $38.54 billion, showing a 5.09% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.30 per share and revenue of $138.26 billion, which would represent changes of +7.89% and +5.95%, respectively, from the prior year.
Any recent changes to analyst estimates for Alibaba should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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 remained stagnant. Alibaba is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Alibaba is currently exchanging hands at a Forward P/E ratio of 9.2. This denotes a discount relative to the industry's average Forward P/E of 25.34.
We can also see that BABA currently has a PEG ratio of 0.38. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. BABA's industry had an average PEG ratio of 1.31 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 74, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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