Are You a Value Investor? This 1 Stock Could Be the Perfect Pick
In This Article:
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.
While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and 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 boasts a Value Style Score of A and VGM Score of A, and holds a Zacks Rank #2 (Buy) rating. Shares of Alibaba are trading at a forward earnings multiple of 11.4X, as well as a PEG Ratio of 0.4, a Price/Cash Flow ratio of 9.6X, and a Price/Sales ratio of 1.9X.
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 $0.26 to $8.94 per share. BABA also holds an average earnings surprise of 3.7%.
With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding BABA to their portfolios.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report