Analysts bullish on Alibaba with high Strong Buy ratings, but caution is advised

From NASDAQ.: 2024-03-28 09:30:11

When deciding on stock investments, analysts’ recommendations play a crucial role. Alibaba (BABA) currently has an average brokerage recommendation (ABR) of 1.38, with 81.3% Strong Buy ratings. However, studies show brokerage recommendations may not always lead to profitable investments due to potential bias and conflicting interests.

Using the Zacks Rank, a tool based on earnings estimate revisions, can help investors predict stock performance more accurately. Unlike brokerage recommendations, the Zacks Rank is driven by quantifiable data and trends in earnings estimate revisions, providing a more objective and reliable indication of a stock’s potential.

Alibaba’s Zacks Consensus Estimate for the current year remains at $8.86, resulting in a Zacks Rank #3 (Hold) due to steady earnings prospects. It’s important to approach the Buy-equivalent ABR cautiously, considering both positive and negative factors influencing the stock’s performance in the near term. For more detailed analysis and information on Alibaba, visit Zacks.com.



Read more at NASDAQ.: Wall Street Bulls Look Optimistic About Alibaba (BABA): Should You Buy?