Alibaba Group Holding Limited (NYSE:BABA) Outpaces Stock Market Gains
In the latest trading session, Alibaba (BABA) closed at $174, marking a +0.58% move from the previous day. This change outpaced the S&P 500’s 0.28% gain on the day. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq added 0.71%.
Prior to today’s trading, shares of the online retailer had gained 2.82% over the past month. This has lagged the Retail-Wholesale sector’s gain of 2.94% and outpaced the S&P 500’s gain of 1.93% in that time.
Wall Street will be looking for positivity from BABA as it approaches its next earnings report date. The company is expected to report EPS of $1.51, up 23.77% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.53 billion, up 35.17% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.72 per share and revenue of $74.48 billion, which would represent changes of +17.48% and +33.92%, respectively, from the prior year.
Any recent changes to analyst estimates for BABA should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Looking at its valuation, BABA is holding a Forward P/E ratio of 25.76. This represents a discount compared to its industry’s average Forward P/E of 28.58.
It is also worth noting that BABA currently has a PEG ratio of 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. The Internet – Commerce industry currently had an average PEG ratio of 1.85 as of yesterday’s close.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 183.43.
The projected lower bound is: 164.37.
The projected closing price is: 173.90.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 53.7657. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 58.72. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 33 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 36. This is not a topping or bottoming area. The last signal was a sell 11 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 3 period(s) ago.
Rex Takasugi – TD Profile
ALIBABA GRP ADR closed up 1.010 at 174.000. Volume was 9% below average (neutral) and Bollinger Bands were 42% narrower than normal.
Open High Low Close Volume___
173.500 174.270 171.440 174.000 3,292,534
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 171.37 165.20 163.52
Volatility: 20 37 43
Volume: 3,069,269 4,315,078 3,896,861
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
ALIBABA GRP ADR is currently 6.4% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of BABA.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on BABA.N and have had this outlook for the last 22 periods.