Why the Market Dipped But Alibaba (BABA) Gained Today

Alibaba (BABA) closed the latest trading day at $110.15, indicating a +1.18% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 2.36%. Meanwhile, the Dow lost 2.48%, and the Nasdaq, a tech-heavy index, lost 2.55%.The online retailer's shares have seen a decrease of 19.44% over the last month, not keeping up with the Retail-Wholesale sector's loss of 4.2% and the S&P 500's loss of 5.6%.Investors will be eagerly watching for the performance of Alibaba in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.48, marking a 5.71% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $33.08 billion, showing a 7.64% escalation compared to the year-ago quarter.Any recent changes to analyst estimates for Alibaba should also be noted by investors. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.2% higher. At present, Alibaba boasts a Zacks Rank of #1 (Strong Buy).Looking at valuation, Alibaba is presently trading at a Forward P/E ratio of 9.94. This signifies a discount in comparison to the average Forward P/E of 22.7 for its industry.Meanwhile, BABA's PEG ratio is currently 0.33. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Commerce industry had an average PEG ratio of 1.28 as trading concluded yesterday.The Internet - Commerce industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 49, placing it within the top 20% of over 250 industries.The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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