Here's Why You Should Add Alibaba (BABA) To Your Portfolio

By Zacks Investment ResearchStock MarketsDec 20, 2017 09:57PM ET

www.investing.com/analysis/heres-why-you-should-add-alibaba-baba-to-your-portfolio-200275090

Here's Why You Should Add Alibaba (BABA) To Your Portfolio

By Zacks Investment Research | Dec 20, 2017 09:57PM ET

Saved. See Saved Items.

This article has already been saved in your Saved Items

+0.86%

Add to/Remove from Watchlist

CMCSA

-1.02%

Add to/Remove from Watchlist

GRPN

-2.10%

Add to/Remove from Watchlist

BABA

+3.51%

Add to/Remove from Watchlist

PENG

-1.89%

Add to/Remove from Watchlist

Alibaba Group Holding Limited (NYSE:BABA) is currently one of the top-performing stocks in the technology sector and an increase in share price and strong fundamentals signal its bullish run. Therefore, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

The company has performed well this year and has the potential to carry on the momentum in the near term.

Why an Attractive Pick?

Share Price Appreciation: A glimpse of the company’s price trend shows that the stock has an impressive run on the bourses year to date. Alibaba has returned 96.6% compared with the industry’s rally of 60.6%.

Solid Rank: Alibaba sports a Zacks Rank #1 (Strong Buy). Thus, the company appears to be a compelling investment proposition at the moment.

Northward Estimate Revisions: Six estimates for the current year have moved north over the past 60 days against no southward revisions, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for the current year has increased 6.0%. Also, for fiscal 2019, the Zacks Consensus Estimate has inched up 4.0% to $6.73.

Positive Earnings Surprise History: Garmin has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive earnings surprise of 14.95%.

Strong Growth Prospects: The company’s Zacks Consensus Estimate for fiscal 2018 earnings of $5.21 reflects year-over-year growth of 52.8%. Moreover, earnings are expected to register 29.3% growth in fiscal 2019. The stock has long-term expected earnings per share growth rate of 30.7%.

Growth Drivers

Alibaba's solid growth in the company’s core e-commerce business, strong growth in metrics, mobile strength and international expansion helps it in generating significant revenues.

Other drivers include strong cloud computing business. In a bid to expand the reach of its cloud platform, the company has open data centers in a number of places, including India and Indonesia. Besides this, the company has also signed cloud agreements with a number of companies to address the rising demand for cloud services. According to the latest fiscal second quarter earnings release, the company’s cloud computing business grew 99% year over year,

Also, Alibaba’s growth has been sparked by a spike in new initiatives like entertainment. Recently, Alibaba's streaming video site Youku signed new content licensing deals with Comcast (NASDAQ:CMCSA)'s NBCUniversal and Sony Pictures, further strengthening its foothold in the media industry. In its latest quarterly release, the digital media and entertainment division registered growth of 33% year over year.

Apart from this, the e-commerce giant is leaving no stone unturned to explore new avenues. Recently, the company teamed up with Ford Motor Company (NYSE:F) to strengthen its presence in the automotive space.

We believe that increasing investments and innovation in various fields and strong financial position will continue to drive the company’s long-term growth.

Alibaba Group Holding Limited Price and Consensus

Alibaba Group Holding Limited Price and Consensus | Alibaba Group Holding Limited Quote

Other Stocks to Consider

A few other top-ranked stocks in the broader technology sector are Groupon Inc. (NASDAQ:GRPN) , and SMART Global Holdings, Inc. (NASDAQ:SGH) , each carrying a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings per share growth rate for Groupon, PetMed Express and SMART Global is projected at 7% and 15%, respectively.

Zacks’ Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.

Click here for Zacks' private trades >>

Groupon, Inc. (GRPN): Free Stock Analysis Report

Alibaba Group Holding Limited (BABA): Free Stock Analysis Report

Ford Motor Company (F): Free Stock Analysis Report

SMART Global Holdings, Inc. (SGH): Free Stock Analysis Report

Original post

Zacks Investment Research

NVIDIA Earnings: Can Blackwell Chips Provide Tailwind? By Dave Kovaleski - Feb 25, 2025

The markets have been sluggish this week as investors hope for a jolt later in the week when AI juggernaut NVIDIA Corporation (NASDAQ:NVDA) reports fourth quarter and year-end...

3 Dividend-Paying Stocks Bucking the Market’s Trend By Ryan Hasson - Feb 25, 2025

On Friday, a wave of selling pressure swept across the US equity markets, leaving a trail of losses. The S&P 500 closed down 1.7%, the DOW slid 1.69%, and the NASDAQ tumbled a...

Palantir: Down 30% This Week, Is It Time to Flee the High-Flying... By Alessandro Bergonzi - Feb 25, 2025 6

Palantir remains highly valued with a 460x P/E ratio and a 42.5x P/B ratio, far above its peers. The stock's beta of 2.81 signals high volatility, meaning sharp moves in both...

Add a Comment

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:

Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
Only English comments will be allowed.
Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

I have read Investing.com's comments guidelines and agree to the terms described.

I Agree

Write your thoughts here

Are you sure you want to delete this chart?

Delete Cancel

Post

Post also to:

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.

<div id="comment">
				<div class="comment js-comment" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
    <div class="mainComment js-content">
       <div class="commentInnerWrapper">
        <a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody">
                					<span class="commentUsername">
                    	<a href="{userLink}" class="js-user-link js-user-name">{username}</a>
					</span>
                                <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
                <div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

<div class="js-option addRow follow">
            <div class="js-follow-post-button" data-reg_ep="follow comment">
                <span class="alertfollowIcon middle"></span>Follow this post            </div>
            <div class="js-unfollow-post-button displayNoneImp">
                <span class="alertUnfollowIcon middle"></span>Unfollow this post            </div>
        </div>

<div class="addRow js-option save"  data-reg_ep="save comment">
		<a href="javascript:void(0);" class="js-save-item-btn" data-item-type="comments" data-item-id="{commentID}">
			<i class="saveItemBigIcon middle"></i>
			Save		</a>
	</div>
	<div class="addRow saveItemsConfirmation noHover displayNone js-saveItemResult">
		
<div class="content js-saveItemSuccess displayNone">
	<span class="mediumGreenSuccessIcon"></span><span>Saved. See <a href="/members-admin/saved-items" target="_blank">Saved Items</a>.</span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
<div class="content js-saveItemAlreadySaved saveItemAlreadySaved displayNoneImp">
	<span>This comment has already been saved in your <a href="/members-admin/saved-items" target="_blank">Saved Items</a></span>
	<a href="javascript:void(0);" class="bugCloseIcon js-close"></a>
</div>
	</div>

<div class="addRow shareButtons js-sharePopup displayNone">
			<div class="js-shareComment"><span class="js-shareCommentSpan"></span></div>
		</div>
	</div>
</div>
                 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div>             </div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="commentBigChart js-comment-chart" onclick="openViewChartPopup('{commentID}')">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

<div class="reportComment js-flag float_lang_base_2">
                            <a href="javascript:void(0);" id="commentFlag_{commentID}">
                                <span class="reportCommentIcon middle"></span><span class="inlineblock middle">Report</span>
                            </a>
                        </div>
                    				</div>
					</div>
	   </div>
	</div>
	</div>			</div>
			<div id="reply">
				
    <div class="commentReply js-comment js-comment-reply" data-comment-id="{commentID}" id="comment-{commentID}" data-user-id="">
		<div class="commentInnerWrapper"><a href="{userLink}" class="js-user-link"><img src="{userImage}" width="33" height="33" alt="{usernameAlt}" class="img" onerror="this.src='https://i-invdn-com.investing.com/defaultUserMaleTmp.png';"></a><div class="commentBody js-content">
            				<span class="commentUsername">
					<a href="{userLink}" class="commentUsername js-user-link js-user-name" onMouseOver="">{username}</a>
				</span>
                        <span class="js-date" comment-date="{dateFormat}" comment-date-formatted="{dateFormatted}" title="{dateTitle}">Just Now</span>
			 <div class="commentAuthor js-comment-by-author"><span class="commentAuthorIcon"></span>Author's response</div> 			<div class="commentDropDown js-commentDropDownWrapper " data-user-id="" data-cid="{commentID}">
	<a href="javascript:void(0);" class="threeDotsIconSmall js-thinDropdownArrow"></a>
	<div class="tooltipPopup commentActionsPop noHeader js-commentDropDownOptions displayNone">
		<div class="addRow js-option share">
			<a href="javascript:void(0);" class="js-commentSharePopup" data-cid="{commentID}" data-curl="{commentLink}"><span class="smallShareIcon middle"></span>Share</a>
		</div>

</div>
		<div id="commentText-{commentID}" class="js-text-wrapper commentText withImage">
							<div id="commentBigChart{commentID}" class="replyBigChart displayNone js-comment-chart">
					<img src="https://d1-invdn-com.investing.com/comments_images/{commentImage}" alt="{commentAlt}">
					<i class="newMagnifyChartIcon"></i>
				</div>
				<span id="commentSmallChart{commentID}" class="commentSmallChart pointer js-comment-chart" onclick="openViewChartPopup('{commentID}')">
                    <img src="https://d1-invdn-com.investing.com/comments_images/{commentImageSmall}" width="116" height="52" alt="{commentAlt}">
                    <span class="chartMagnifyOverlay displayNone"></span>
                    <span class="searchGlassIcon chartMagnify displayNone"></span>
                </span>
						<span class="js-text">{commentContent}</span>
			<div class="clear"></div>
							<div class="commentButtons js-not-master-user">
					<a href="javascript:void(0)" class="reply js-reply-btn" data-real-parent-id="{commentID}" data-to-user-name="{username}" data-to-user-id="">Reply</a>
					<div class="inlineblock likeDislikeBox js-like-dislike-box" data-item-id="{commentID}">
	<input class="js-like-checkbox" type="checkbox" name="option" value="Yes" id="like_{commentID}">
	<label for="like_{commentID}" class="like" title="I agree"></label>
	<span class="numOfLikes js-like-count lighterGrayFont">0</span>
	<input class="js-dislike-checkbox" type="checkbox" name="option" value="No" id="dislike_{commentID}">
	<label for="dislike_{commentID}" class="dislike" title="I disagree"></label>
	<span class="numOfDislikes js-dislike-count lighterGrayFont">0</span>
</div>

Are you sure you want to delete this chart?

Delete Cancel

Post

Replace the attached chart with a new chart ?

Replace Cancel

1000

Comment Guidelines

Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.

Please wait a minute before you try to comment again.

I feel that this comment is:

Spam

Offensive

Thank You!

Your report has been sent to our moderators for review

Central Banks

Interest Rates

Next Meeting

FED

4.50%

Mar 19, 2025

ECB

2.90%

Mar 06, 2025

BOE

4.50%

Mar 20, 2025

SNB

0.50%

Mar 20, 2025

RBA

4.10%

Apr 01, 2025

BOC

3.00%

Mar 12, 2025

RBNZ

3.75%

Apr 09, 2025

BOJ

0.50%

Mar 19, 2025

CBR

21.00%

Mar 21, 2025

RBI

6.25%

Mar 10, 2025

PBOC

3.10%

BCB

13.25%

Mar 19, 2025

US 30	43,634.8	+172.9	+0.40%
US 500	5,963.7	-19.8	-0.33%
Dow Jones	43,630.35	+169.14	+0.39%
S&P 500	5,963.56	-19.93	-0.33%
Nasdaq	19,078.66	-208.27	-1.08%
S&P 500 VIX	19.38	+0.40	+2.11%
Dollar Index	106.220	-0.289	-0.27%

Crude Oil WTI	69.08	-1.62	-2.29%
Brent Oil	72.61	-1.70	-2.29%
Natural Gas	4.099	+0.117	+2.94%
Gold	2,923.91	-39.29	-1.33%
Silver	31.920	-0.683	-2.09%
Copper	4.5527	-0.0108	-0.24%
US Soybeans	1,031.25	+2.25	+0.22%

U.S. 10Y	4.295	-0.098	-2.23%
U.S. 30Y	4.552	-0.097	-2.09%
U.S. 5Y	4.124	-0.106	-2.51%
U.S. 3M	4.292	-0.007	-0.16%
US 10Y T-Note	110.52	+0.64	+0.58%
Euro Bund	132.45	+0.61	+0.47%
10-2 Yield Spread	22.59	-0.34	-1.48%

Apple	248.00	+0.90	+0.36%
Alphabet A	176.40	-2.85	-1.59%
Tesla	300.79	-29.75	-9.00%
Amazon.com	211.62	-1.10	-0.51%
Netflix	976.05	-12.42	-1.26%
Meta Platforms	659.91	-8.22	-1.23%
Bank of America	43.92	-0.55	-1.23%

Here's Why You Should Add Alibaba (BABA) To Your Portfolio

Related Articles