Alibaba Stock Outperforms Despite Broader Losses Ahead of Earnings
• Alibaba (BABA) stock closed higher (+1.4%) despite broader market losses, outperforming the S&P 500 (-0.2%) and Dow (-0.6%)
• BABA has lagged the market over the past month (-3.03% vs S&P 500 +3.32%) ahead of its forthcoming earnings report
• Analysts estimate BABA will report $1.56 EPS (unchanged) and $31.19 billion revenue (+2.89%) in the upcoming quarterly results
• Recently stagnant EPS estimate revisions still give BABA a favorable Zacks Rank #3 (Hold), signaling analyst confidence
• BABA trades at an attractive valuation (P/E 8.16x) compared to internet industry peers (average 19.33x)