![]() ![]() No investment decision can be efficient without considering a stock's valuation. The company topped consensus revenue estimates two times over this period. The company beat consensus EPS estimates in each of the trailing four quarters. EPS of $2.79 for the same period compares with $2.65 a year ago.Ĭompared to the Zacks Consensus Estimate of $35.36 billion, the reported revenues represent a surprise of +1.57%. Last Reported Results and Surprise HistoryĪlibaba reported revenues of $35.92 billion in the last reported quarter, representing a year-over-year change of -5.6%. The $127.73 billion and $142.64 billion estimates for the current and next fiscal years indicate changes of -4.2% and +11.7%, respectively. In the case of Alibaba, the consensus sales estimate of $30.87 billion for the current quarter points to a year-over-year change of -4.1%. Therefore, knowing a company's potential revenue growth is crucial. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:Įven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Alibaba. With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. Over the past month, the estimate has changed -1.4%. This estimate has changed -1.7% over the last 30 days.įor the next fiscal year, the consensus earnings estimate of $8.20 indicates a change of +4.4% from what Alibaba is expected to report a year ago. The consensus earnings estimate of $7.85 for the current fiscal year indicates a year-over-year change of -5.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.6%. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.Īlibaba is expected to post earnings of $1.30 per share for the current quarter, representing a year-over-year change of +4%. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. When earnings estimates for a company go up, the fair value for its stock goes up as well. Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. The key question now is: What could be the stock's future direction?Īlthough media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. ![]() During this period, the Zacks Internet - Commerce industry, which Alibaba falls in, has lost 0.5%. ![]() Over the past month, shares of this online retailer have returned -18%, compared to the Zacks S&P 500 composite's +1.2% change. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future. Alibaba ( BABA Quick Quote BABA - Free Report) has recently been on 's list of the most searched stocks. ![]()
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