ZACKS·2026-02-03 23:46Company Performance - Alibaba's stock closed at $163.65, reflecting a -2.81% change from the previous day's closing price, underperforming compared to the S&P 500's loss of 0.84% [1] - The stock has increased by 7.76% over the past month, outperforming the Retail-Wholesale sector's gain of 6.19% and the S&P 500's gain of 1.8% [1] Earnings Expectations - Analysts anticipate Alibaba will report an EPS of $1.91, indicating a 34.81% decline compared to the same quarter last year, with a projected revenue of $41.26 billion, reflecting a 7.49% increase year-over-year [2] - Full-year estimates predict earnings of $5.98 per share and revenue of $147.21 billion, representing year-over-year changes of -33.63% and +6.57%, respectively [3] Analyst Sentiment - Recent consensus EPS projections have decreased by 6.93% over the past 30 days, and Alibaba currently holds a Zacks Rank of 5 (Strong Sell) [5] - Positive estimate revisions are indicative of analyst optimism regarding the company's business and profitability [3][4] Valuation Metrics - Alibaba's Forward P/E ratio stands at 28.18, which is a premium compared to the industry average Forward P/E of 16.34 [5] - The company has a PEG ratio of 3.26, significantly higher than the industry average PEG ratio of 1.07 [6] Industry Context - The Internet - Commerce industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 179, placing it in the bottom 27% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]