Alibaba (BABA) Exceeds Market Returns: Some Facts to Consider

Alibaba (BABA) closed the most recent trading day at $112.78, moving +1.31% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.03%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.36%.The the stock of online retailer has risen by 38.22% in the past month, leading the Retail-Wholesale sector's gain of 9.07% and the S&P 500's gain of 4.19%.Market participants will be closely following the financial results of Alibaba in its upcoming release. The company plans to announce its earnings on February 20, 2025. The company is expected to report EPS of $3.08, up 15.36% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $38.19 billion, indicating a 4.14% growth compared to the corresponding quarter of the prior year.Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $8.72 per share and revenue of $137.23 billion, indicating changes of +1.16% and +5.16%, respectively, compared to the previous year.It's also important for investors to be aware of any recent modifications to analyst estimates for Alibaba. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 shifted 0.63% downward. Alibaba is currently sporting a Zacks Rank of #3 (Hold).With respect to valuation, Alibaba is currently being traded at a Forward P/E ratio of 12.77. This denotes a discount relative to the industry's average Forward P/E of 21.96.Also, we should mention that BABA has a PEG ratio of 0.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Commerce industry currently had an average PEG ratio of 1.13 as of yesterday's close.The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See 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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks