Alibaba (BABA) has recently underperformed the S&P 500, returning -8.1% over the past month, and has been assigned a Zacks Rank #5 (Strong Sell) driven by substantial negative revisions to its earnings estimates. Analysts project a significant year-over-year decline in current quarter and fiscal year EPS, despite some projected revenue growth and a slight revenue beat last quarter. Furthermore, the stock received an 'F' grade for valuation, indicating it trades at a premium to peers, leading Zacks to suggest potential near-term underperformance.
Alibaba (BABA) has exhibited significant underperformance, returning -8.1% over the past month, notably lagging the S&P 500's +2.1% gain. This, combined with substantial negative revisions to its earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell), signaling potential near-term market underperformance. Current quarter EPS is projected at $0.66, a sharp -69.3% year-over-year decline, with consensus estimates revised down -11.4% in the last 30 days. The current fiscal year EPS estimate of $6.57 also indicates a -27.1% year-over-year decrease, following a -14.1% revision. Although next fiscal year EPS projects a +50.6% increase, its estimate was recently revised down by -7.9%. While last quarter's revenue of $34.57 billion (+3.3% YOY) slightly beat consensus by 0.9%, EPS of $2.06 missed estimates by -3.29%. The company has only surpassed EPS estimates once in the past four quarters. Furthermore, Alibaba holds an 'F' grade on the Zacks Value Style Score, suggesting it trades at a premium relative to its industry peers.
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Request a DemoOverall Sentiment
strongly negative
Sentiment Score
-0.65
Ticker Sentiment
