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Alibaba (BABA) Gains As Market Dips: What You Should Know
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The latest trading session saw Alibaba (BABA - Free Report) ending at $98.40, denoting a +0.84% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq lost 0.33%.
Shares of the online retailer have depreciated by 14.8% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.01% and the S&P 500's gain of 0.41%.
Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 15, 2024. The company's earnings per share (EPS) are projected to be $2.09, reflecting a 2.34% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $33.25 billion, reflecting a 7.93% rise from the equivalent 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.
It is also important to note the recent changes to analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.89% upward. Currently, Alibaba is carrying a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Alibaba is at present trading with a Forward P/E ratio of 10.91. This denotes a discount relative to the industry's average Forward P/E of 23.79.
It's also important to note that BABA currently trades at a PEG ratio of 0.41. 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 was holding an average PEG ratio of 1.25 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.
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Alibaba (BABA) Gains As Market Dips: What You Should Know
The latest trading session saw Alibaba (BABA - Free Report) ending at $98.40, denoting a +0.84% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.28% for the day. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq lost 0.33%.
Shares of the online retailer have depreciated by 14.8% over the course of the past month, underperforming the Retail-Wholesale sector's gain of 1.01% and the S&P 500's gain of 0.41%.
Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 15, 2024. The company's earnings per share (EPS) are projected to be $2.09, reflecting a 2.34% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $33.25 billion, reflecting a 7.93% rise from the equivalent 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.
It is also important to note the recent changes to analyst estimates for Alibaba. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.89% upward. Currently, Alibaba is carrying a Zacks Rank of #1 (Strong Buy).
In the context of valuation, Alibaba is at present trading with a Forward P/E ratio of 10.91. This denotes a discount relative to the industry's average Forward P/E of 23.79.
It's also important to note that BABA currently trades at a PEG ratio of 0.41. 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 was holding an average PEG ratio of 1.25 at yesterday's closing price.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 59, finds itself in the top 24% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow BABA in the coming trading sessions, be sure to utilize Zacks.com.