From Nasdaq: 2024-04-15 09:30:10

Wall Street analysts often influence investor decisions. But do their recommendations really matter? Currently, Alibaba has an ABR of 1.38, with 81.3% Strong Buy recommendations. However, studies show limited success with brokerage recommendations due to positive bias. Zacks Rank, based on earnings estimate revisions, is a more reliable tool for investment decisions.

While ABR calls for buying Alibaba, it’s essential to consider other factors. Brokerage analysts’ strong positive bias can mislead investors. The Zacks Rank, driven by earnings estimate revisions, correlates well with stock price movements. With a Zacks Rank #3 (Hold) for Alibaba, combined with stagnant earnings estimates, caution may be wise.

Zacks experts recommend an American AI company with potential to double or quadruple in the coming year. This pick could surpass previous success stories like Boston Beer Company and NVIDIA. For more top stock recommendations from Zacks Investment Research, download the latest report for the next 30 days.



Read more at Nasdaq: Brokers Suggest Investing in Alibaba (BABA): Read This Before Placing a Bet