Alibaba (BABA) Advances While Market Declines: Some Information for Investors

In the latest trading session, Alibaba (BABA) closed at $152.24, marking a +1.45% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.03%. Elsewhere, the Dow saw a downswing of 0.04%, while the tech-heavy Nasdaq depreciated by 0.09%. The online retailer's stock has dropped by 4.78% in the past month, falling short of the Retail-Wholesale sector's gain of 1.47% and the S&P 500's gain of 2.57%.The investment community will be paying close attention to the earnings performance of Alibaba in its upcoming release. The company is forecasted to report an EPS of $2.24, showcasing a 23.55% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $41.33 billion, indicating a 7.67% upward movement from the same quarter last year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.42 per share and a revenue of $146.08 billion, representing changes of -28.75% and +5.75%, respectively, from the prior year. Investors should also take note of any recent adjustments to analyst estimates 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 business performance and profit potential. Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.83% lower. At present, Alibaba boasts a Zacks Rank of #5 (Strong Sell). Looking at valuation, Alibaba is presently trading at a Forward P/E ratio of 23.36. This represents a premium compared to its industry average Forward P/E of 19. Investors should also note that BABA has a PEG ratio of 2.08 right now. 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. As the market closed yesterday, the Internet - Commerce industry was having an average PEG ratio of 1.46. The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250. The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com. Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alibaba Group Holding Limited (BABA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks