Alibaba (BABA) closed the most recent trading day at $85.91, moving -1.5% from the previous trading session. This move lagged the S&P 500's daily loss of 1.47%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq lost 1.57%.
Coming into today, shares of the online retailer had lost 5.44% in the past month. In that same time, the Retail-Wholesale sector lost 1.09%, while the S&P 500 lost 1.43%.
Wall Street will be looking for positivity from Alibaba as it approaches its next earnings report date. In that report, analysts expect Alibaba to post earnings of $2.15 per share. This would mark year-over-year growth of 18.13%. Meanwhile, our latest consensus estimate is calling for revenue of $31.68 billion, up 8.78% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.13 per share and revenue of $133.89 billion. These totals would mark changes of +14.99% and +4.67%, respectively, from last year.
Investors should also note any recent changes 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 company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Alibaba is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 9.56. For comparison, its industry has an average Forward P/E of 20.53, which means Alibaba is trading at a discount to the group.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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