Alibaba (BABA) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest close session, Alibaba (BABA) was down 1.16% at $119.99. The stock fell short of the S&P 500, which registered a loss of 0.59% for the day. At the same time, the Dow added 0.02%, and the tech-heavy Nasdaq lost 1.46%. The online retailer's shares have seen an increase of 0.94% over the last month, not keeping up with the Retail-Wholesale sector's gain of 3.3% and the S&P 500's gain of 2.49%.Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. The company's earnings report is set to go public on August 29, 2025. The company is expected to report EPS of $2.13, down 5.75% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $34.26 billion, indicating a 2.37% increase compared to the same quarter of the previous year. For the full year, the Zacks Consensus Estimates are projecting earnings of $8.58 per share and revenue of $141.93 billion, which would represent changes of -4.77% and +2.75%, respectively, from the prior year. Investors should also pay attention to any latest changes in analyst estimates for Alibaba. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Alibaba is carrying a Zacks Rank of #5 (Strong Sell). Looking at its valuation, Alibaba is holding a Forward P/E ratio of 14.16. Its industry sports an average Forward P/E of 19.74, so one might conclude that Alibaba is trading at a discount comparatively. It's also important to note that BABA currently trades at a PEG ratio of 1.63. 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 currently had an average PEG ratio of 1.54 as of yesterday's close. The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 152, placing it within the bottom 39% of over 250 industries. The Zacks Industry Rank gauges the strength of our individual 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. Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>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