Here's Why Alibaba (BABA) Fell More Than Broader Market

The most recent trading session ended with Alibaba (BABA) standing at $84.27, reflecting a -0.86% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily loss of 0.09%. At the same time, the Dow added 0.04%, and the tech-heavy Nasdaq lost 0.1%.The online retailer's stock has dropped by 2.04% in the past month, falling short of the Retail-Wholesale sector's gain of 3.61% and the S&P 500's loss of 0.29%.Market participants will be closely following the financial results 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%. Our most recent consensus estimate is calling for quarterly revenue of $38.54 billion, up 5.09% from the year-ago period.For the full year, the Zacks Consensus Estimates project earnings of $9.30 per share and a revenue of $138.26 billion, demonstrating changes of +7.89% and +5.95%, respectively, from the preceding year.Investors should also take note of any recent adjustments to analyst estimates for Alibaba. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Alibaba presently features a Zacks Rank of #3 (Hold).In the context of valuation, Alibaba is at present trading with a Forward P/E ratio of 9.14. This denotes a discount relative to the industry's average Forward P/E of 25.84.Meanwhile, BABA's PEG ratio is currently 0.38. 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 had an average PEG ratio of 1.22 as trading concluded yesterday.The Internet - Commerce industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 129, this industry ranks in the bottom 49% 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.Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.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