Alibaba (BABA) Stock Sinks As Market Gains: What You Should Know

Cecilia2828
01-09 14:28

In the latest trading session, Alibaba (BABA) closed at $83.69, marking a -0.94% move from the previous day. This change lagged the S&P 500's 0.16% gain on the day. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq lost 0.06%.

The the stock of online retailer has fallen by 5.96% in the past month, lagging the Retail-Wholesale sector's loss of 4.84% and the S&P 500's loss of 2.8%.

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Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. The company's upcoming EPS is projected at $3.03, signifying a 13.48% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $38.54 billion, indicating a 5.09% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $9.30 per share and a revenue of $138.26 billion, demonstrating changes of +7.89% and +5.95%, respectively, from the preceding year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Alibaba. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Investors should also note Alibaba's current valuation metrics, including its Forward P/E ratio of 9.08. This expresses a discount compared to the average Forward P/E of 21.6 of its industry.

Investors should also note that BABA has a PEG ratio of 0.38 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.2.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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