Alibaba (BABA) Stock Moves -3.92%: What You Should Know

Alibaba (BABA) closed the most recent trading day at $166.67, moving -3.92% from the previous trading session. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq depreciated by 0.16%. Shares of the online retailer witnessed a gain of 5.61% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 3.79%, and the S&P 500's gain of 1.16%.Market participants will be closely following the financial results of Alibaba in its upcoming release. The company is expected to report EPS of $0.66, down 69.3% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $34.43 billion, indicating a 2.17% growth compared to the corresponding quarter of the prior year. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.57 per share and a revenue of $144.67 billion, representing changes of -27.08% and +4.73%, respectively, from the prior year. Any recent changes to analyst estimates for Alibaba should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 16.33% lower. Alibaba presently features a Zacks Rank of #5 (Strong Sell). Digging into valuation, Alibaba currently has a Forward P/E ratio of 26.39. This denotes a premium relative to the industry average Forward P/E of 22.82. It is also worth noting that BABA currently has a PEG ratio of 2.08. 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 of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.42. The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 53, this industry ranks in the top 22% of all industries, numbering over 250. The Zacks Industry Rank is ordered 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. Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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