Alibaba (BABA) closed the most recent trading day at $133.28, moving +1.47% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.8%. At the same time, the Dow lost 0.15%, and the tech-heavy Nasdaq gained 1.6%.
Shares of the online retailer witnessed a loss of 3.82% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 7.22%, and the S&P 500's gain of 5.15%.
Market participants will be closely following the financial results of Alibaba in its upcoming release. The company is forecasted to report an EPS of $1.22, showcasing a 29.48% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $35.23 billion, reflecting a 8.12% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.08 per share and a revenue of $148.97 billion, representing changes of -43.62% and +7.84%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alibaba. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 19.53% lower within the past month. Currently, Alibaba is carrying a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Alibaba is currently exchanging hands at a Forward P/E ratio of 18.25. This expresses a premium compared to the average Forward P/E of 16.58 of its industry.
Meanwhile, BABA's PEG ratio is currently 2.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Commerce industry had an average PEG ratio of 0.93 as trading concluded yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 174, which puts it in the bottom 29% 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.
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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Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).