Why the Market Dipped But Alibaba (BABA) Gained Today

The latest trading session saw Alibaba (BABA) ending at $84.95, denoting a +0.19% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.22%. Meanwhile, the Dow experienced a drop of 0.36%, and the technology-dominated Nasdaq saw a decrease of 0.16%.The the stock of online retailer has fallen by 0.16% in the past month, leading the Retail-Wholesale sector's loss of 1.69% and the S&P 500's loss of 2.36%.Analysts and investors alike will be keeping a close eye on the performance of Alibaba in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.03, showcasing a 13.48% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $38.54 billion, up 5.09% from the year-ago period.BABA's full-year Zacks Consensus Estimates are calling for earnings of $9.30 per share and revenue of $138.26 billion. These results would represent year-over-year changes of +7.89% and +5.95%, respectively.Investors might also notice recent changes to analyst estimates for Alibaba. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, Alibaba boasts a Zacks Rank of #3 (Hold).Digging into valuation, Alibaba currently has a Forward P/E ratio of 9.12. This represents a discount compared to its industry's average Forward P/E of 20.75.Also, we should mention that BABA has a PEG ratio of 0.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Commerce industry currently had an average PEG ratio of 1.21 as of yesterday's close.The Internet - Commerce industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.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.You can find more information on all of these metrics, and much more, on Zacks.com.Just Released: Zacks Top 10 Stocks for 2024Hurry – you can still get in early on our 10 top tickers for 2025. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2025. You can still be among the first to see these just-released stocks with enormous potential. See 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