ZACKS·2024-06-24 22:50Company Performance - Alibaba's stock closed at $74.75, reflecting a +1.46% increase compared to the previous day, outperforming the S&P 500's daily loss of 0.31% [1] - Over the past month, Alibaba's stock has decreased by 9.34%, underperforming the Retail-Wholesale sector's gain of 1.85% and the S&P 500's gain of 2.73% [1] - Analysts expect Alibaba to report earnings of $2.24 per share, indicating a year-over-year decline of 6.67%, with projected net sales of $34.95 billion, an increase of 8.22% from the previous year [1] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $8.20 per share and revenue of $138.63 billion, representing shifts of -4.87% and +6.23% respectively from the last year [1] Analyst Sentiment - Recent modifications to analyst estimates for Alibaba reflect near-term business trends, with steady Zacks Consensus EPS estimates over the past month [2] - Alibaba currently holds a Zacks Rank of 3 (Hold), indicating a neutral sentiment among analysts [2] Valuation Metrics - Alibaba's Forward P/E ratio stands at 8.98, significantly lower than the industry average of 20.63, suggesting it is trading at a discount [3] - The company has a PEG ratio of 0.39, compared to the Internet - Commerce industry's average PEG ratio of 0.95, indicating favorable valuation relative to growth expectations [3] Industry Context - The Internet - Commerce industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 68, placing it in the top 27% of over 250 industries [3] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the potential for growth within the industry [3]