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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.
Why Investors Should Pay Attention to This Value Stock
Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most discounted stocks.
Alibaba (BABA)
Alibaba Group Holding is one of the leading e-commerce giants in China. Over the last few years, the company has transformed itself from being a traditional e-commerce company to a conglomerate that has businesses ranging from logistics and food delivery to cloud computing.
BABA sits at a Zacks Rank #1 (Strong Buy), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Internet - Commerce industry's P/E of 20.1X, shares of Alibaba are trading at a forward P/E of 9.2X. BABA also has a PEG Ratio of 0.3, a Price/Cash Flow ratio of 9.9X, and a Price/Sales ratio of 1.8X.
A company's earnings performance is important for value investors as well. For fiscal 2025, two analysts revised their earnings estimate higher in the last 60 days for BABA, while the Zacks Consensus Estimate has increased $0.08 to $8.80 per share. BABA also holds an average earnings surprise of 1.5%.
Investors should take the time to consider BABA for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).