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Here's Why Alibaba (BABA) Fell More Than Broader Market
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Alibaba (BABA - Free Report) closed the most recent trading day at $100.40, moving -0.51% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.18%.
Heading into today, shares of the online retailer had gained 12.01% over the past month, outpacing the Retail-Wholesale sector's gain of 1.71% and the S&P 500's gain of 2.76% in that time.
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 $2.09 per share. This would mark a year-over-year decline of 2.34%. Alongside, our most recent consensus estimate is anticipating revenue of $33.25 billion, indicating a 7.93% upward movement from the same quarter last year.
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.
Investors should also pay attention to any latest changes in analyst estimates for Alibaba. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.89% higher. At present, Alibaba boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Alibaba is presently being traded at a Forward P/E ratio of 11.29. This signifies a discount in comparison to the average Forward P/E of 23.02 for its industry.
Meanwhile, BABA's PEG ratio is currently 0.43. 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. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why Alibaba (BABA) Fell More Than Broader Market
Alibaba (BABA - Free Report) closed the most recent trading day at $100.40, moving -0.51% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.18%.
Heading into today, shares of the online retailer had gained 12.01% over the past month, outpacing the Retail-Wholesale sector's gain of 1.71% and the S&P 500's gain of 2.76% in that time.
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 $2.09 per share. This would mark a year-over-year decline of 2.34%. Alongside, our most recent consensus estimate is anticipating revenue of $33.25 billion, indicating a 7.93% upward movement from the same quarter last year.
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.
Investors should also pay attention to any latest changes in analyst estimates for Alibaba. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.89% higher. At present, Alibaba boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Alibaba is presently being traded at a Forward P/E ratio of 11.29. This signifies a discount in comparison to the average Forward P/E of 23.02 for its industry.
Meanwhile, BABA's PEG ratio is currently 0.43. 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. With its current Zacks Industry Rank of 63, this industry ranks in the top 25% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.