Alibaba (BABA) Increases Despite Market Slip: Here's What You Need to Know

Alibaba (BABA) ended the recent trading session at $89.23, demonstrating a +0.28% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.54%. At the same time, the Dow lost 0.53%, and the tech-heavy Nasdaq lost 0.66%.Shares of the online retailer witnessed a loss of 3.28% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 6.47% and the S&P 500's gain of 1.5%.The investment community will be paying close attention to the earnings performance of Alibaba in its upcoming release. In that report, analysts expect Alibaba to post earnings of $3.03 per share. This would mark year-over-year growth of 13.48%. Meanwhile, our latest consensus estimate is calling for revenue of $38.54 billion, up 5.09% from the prior-year quarter.For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.30 per share and a revenue of $138.26 billion, representing changes of +7.89% and +5.95%, 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been a 0.82% fall in the Zacks Consensus EPS estimate. Currently, Alibaba is carrying a Zacks Rank of #3 (Hold).With respect to valuation, Alibaba is currently being traded at a Forward P/E ratio of 9.57. Its industry sports an average Forward P/E of 26.61, 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 0.4. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce was holding an average PEG ratio of 1.29 at yesterday's closing price.The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 75, placing it within the top 30% of over 250 industries.The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.You can find more information on all of these metrics, and much more, on Zacks.com.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.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 ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks