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In the latest trading session, Alibaba (BABA) closed at $85.38, marking a +0.31% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.88%. Meanwhile, the Dow experienced a rise of 1.24%, and the technology-dominated Nasdaq saw an increase of 0.65%.
The online retailer's stock has dropped by 0.02% in the past month, falling short of the Retail-Wholesale sector's gain of 0.92% and the S&P 500's gain of 1.17%.
Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. On that day, Alibaba is projected to report earnings of $3.08 per share, which would represent year-over-year growth of 15.36%. At the same time, our most recent consensus estimate is projecting a revenue of $38.46 billion, reflecting a 4.88% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.72 per share and a revenue of $137.85 billion, representing changes of +1.16% and +5.63%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Alibaba. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 6.82% decrease. As of now, Alibaba holds a Zacks Rank of #3 (Hold).
In the context of valuation, Alibaba is at present trading with a Forward P/E ratio of 9.77. This valuation marks a discount compared to its industry's average Forward P/E of 22.36.
One should further note that BABA currently holds a PEG ratio of 0.41. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.23.