ZACKS·2025-01-14 23:51Group 1: Stock Performance - Alibaba's stock closed at $81.68, reflecting a +1.42% change from the previous trading day's closing, outperforming the S&P 500's daily gain of 0.12% [1] - Over the past month, Alibaba's stock has decreased by 6.41%, which is worse than the Retail-Wholesale sector's loss of 4.43% and the S&P 500's loss of 3.45% [1] Group 2: Earnings Expectations - Analysts expect Alibaba to report earnings of $3.06 per share, indicating a year-over-year growth of 14.61% [2] - The consensus estimate for revenue is $38.46 billion, representing a 4.88% increase compared to the same quarter last year [2] - For the full year, earnings are projected at $8.78 per share and revenue at $137.85 billion, reflecting changes of +1.86% and +5.63% respectively from the previous year [3] Group 3: Analyst Estimates and Rankings - Recent changes to analyst estimates for Alibaba are important as they indicate the evolving business outlook [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Alibaba at 3 (Hold) [6] - Over the past month, the Zacks Consensus EPS estimate for Alibaba has decreased by 6.22% [6] Group 4: Valuation Metrics - Alibaba's Forward P/E ratio is 9.18, which is a discount compared to the industry average Forward P/E of 20.64 [7] - The company has a PEG ratio of 0.38, significantly lower than the industry average PEG ratio of 1.18 [7] Group 5: Industry Context - The Internet - Commerce industry, which includes Alibaba, has a Zacks Industry Rank of 141, placing it in the bottom 44% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]