Alibaba (BABA) Stock Moves -1.82%: What You Should Know
Alibaba (BABA) ended the recent trading session at $162.39, demonstrating a -1.82% change from the preceding day’s closing price. This change was narrower than the S&P 500’s daily loss of 2.06%. Meanwhile, the Dow experienced a drop of 1.76%, and the technology-dominated Nasdaq saw a decrease of 2.39%.
Shares of the online retailer have appreciated by 9.57% over the course of the past month, outperforming the Retail-Wholesale sector’s gain of 5.12%, and the S&P 500’s gain of 1.63%.
The investment community will be closely monitoring the performance of Alibaba in its forthcoming earnings report. The company’s earnings per share (EPS) are projected to be $1.91, reflecting a 34.81% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $41.26 billion, up 7.49% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.05 per share and revenue of $146.7 billion, which would represent changes of -32.85% and +6.2%, respectively, from the prior year.
It’s also important for investors to be aware of any recent modifications to analyst estimates for Alibaba. 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 business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 5.61% lower. Alibaba currently has a Zacks Rank of #5 (Strong Sell).
With respect to valuation, Alibaba is currently being traded at a Forward P/E ratio of 27.34. This expresses a premium compared to the average Forward P/E of 16.94 of its industry.
We can additionally observe that BABA currently boasts a PEG ratio of 3.16. 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. The Internet – Commerce industry had an average PEG ratio of 1.09 as trading concluded yesterday.
The Internet – Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks 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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Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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