From Nasdaq: 2024-05-17 09:30:09

Wall Street analysts play a crucial role in guiding investor decisions on stocks like Alibaba (BABA). Currently, Alibaba has an average brokerage recommendation (ABR) of 1.35, with 82.4% of recommendations at Strong Buy, but their reliability is debatable. The Zacks Rank, however, offers a more reliable indicator of a stock’s performance based on earnings estimate revisions.

While brokerage recommendations have a positive bias due to vested interests, the Zacks Rank focuses on earnings estimate revisions, proving more reliable in predicting stock price movements. The Zacks Rank classifies stocks into five categories, providing a balanced approach to stock rating based on analysts’ earnings estimates.

Alibaba’s recent earnings estimate revisions have resulted in a Zacks Rank #4 (Sell), indicating analysts’ growing pessimism over the company’s prospects. It’s important to consider factors like the Zacks Rank alongside ABR when making investment decisions. Look out for these different measures to make a more informed investing decision.

For investors considering Alibaba, it’s crucial to carefully analyze factors like the Zacks Rank and earnings estimate revisions rather than solely relying on brokerage recommendations. The recent decline in the consensus estimate for Alibaba suggests caution, pointing towards a Zacks Rank #4 (Sell) for the stock. Take a closer look before making any investment decisions regarding Alibaba.



Read more at Nasdaq: Is It Worth Investing in Alibaba (BABA) Based on Wall Street’s Bullish Views?