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Alibaba Stock: Headwinds Appear Temporary

I am bullish on Alibaba (NYSE:BABA). The stock has sunk 32.3% over the past six months, presenting a good opportunity for buy-the-dip investors. Alibaba is a leading B2B and B2C...
Alibaba Stock: Headwinds Appear Temporary © Reuters. Alibaba Stock: Headwinds Appear Temporary

I am bullish on Alibaba (NYSE:BABA). The stock has sunk 32.3% over the past six months, presenting a good opportunity for buy-the-dip investors.

Alibaba is a leading B2B and B2C e-commerce company. The global e-commerce industry’s market size this year is $4.9 trillion, and is expected to reach $7.4 trillion in 2025.

Alibaba is currently trading at a 51% "discount" from its 52-week high of $319.32, suggesting that this could be a good time to go long on the stock. (See Alibaba’s stock charts on TipRanks).

BABA Is Undervalued

Alibaba deserves a spot in your long-term growth-at-reasonable-price, or GARP, portfolio. This stock’s forward P/E ratio is only 13.7x.

That's lower than Amazon (NASDAQ:AMZN) 51.2x, Etsy (NASDAQ:ETSY) 59.9x, and Shopify (NYSE:SHOP) 226.5x.

GARP investors should exploit this asymmetrical bias against Alibaba.

China Headwind is Temporary

Investors are overreacting to Alibaba’s regulatory problems as co-founder Jack Ma will eventually be forgiven by President Xi Jinping.

BABA’s Stochastic Oscillator score is 49.7. This technical indicator is hinting that investors are undecided, or on the sitting-on-the-fence mode.

Alibaba is Very Profitable

Based on the chart below, BABA deserves more love from investors. Its EBITDA margin is 20%, gross margin is 40%, and net income margin is 19.25%.  Alibaba has better profitability stats than Amazon.

(Source: Motek Moyen)

The growing profitability of Alibaba is why it has a Piotroski F Score of 7. This categorizes it as a strong value stock.

Wall Street’s Take

Wall Street analysts consider Alibaba a Strong Buy, based on 22 Buys, one Hold, and one Sell. The average BABA price target is $269.18, implying 73.5% upside potential.

Conclusion

Hyper-growth attributes, and growing profitability make Alibaba a very attractive investment.

This company’s undervaluation relative to its peers is an opportunity warrants attention.

Disclosure: At the time of publication, Motek Moyen did not have a position in any of the securities mentioned in this article.

​Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.

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21-09-2021 05:16:52 (UTC+7)

EUR/USD

1.1729

+0.0003 (+0.03%)

Summary

Neutral

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (1)

Sell (5)

EUR/USD

1.1729

+0.0003 (+0.03%)

Summary

Neutral

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (1)

Sell (5)

GBP/USD

1.3662

+0.0004 (+0.03%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (4)

USD/JPY

109.40

+0.01 (+0.01%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (5)

Sell (0)

AUD/USD

0.7257

+0.0006 (+0.09%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (3)

USD/CAD

1.2814

-0.0011 (-0.09%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (2)

Sell (5)

EUR/JPY

128.31

+0.05 (+0.04%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (4)

Sell (3)

EUR/CHF

1.0884

+0.0008 (+0.07%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (7)

Sell (0)

Gold Futures

1,765.00

+0.20 (+0.01%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (7)

Silver Futures

22.258

+0.011 (+0.05%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (3)

Sell (4)

Copper Futures

4.1307

+0.0057 (+0.14%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (1)

Crude Oil WTI Futures

70.48

+0.14 (+0.20%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (1)

Brent Oil Futures

74.24

+0.18 (+0.24%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (8)

Sell (1)

Natural Gas Futures

4.935

-0.022 (-0.44%)

Summary

Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (1)

Sell (5)

US Coffee C Futures

182.30

-4.10 (-2.20%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Euro Stoxx 50

4,043.63

-87.21 (-2.11%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (1)

Sell (8)

S&P 500

4,357.73

-75.26 (-1.70%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (9)

Sell (1)

DAX

15,132.06

-358.11 (-2.31%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (3)

Sell (2)

FTSE 100

6,903.91

-59.73 (-0.86%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (3)

Hang Seng

24,099.14

-821.62 (-3.30%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

US Small Cap 2000

2,178.78

-58.09 (-2.60%)

Summary

↑ Buy

Moving Avg:

Buy (8)

Sell (4)

Indicators:

Buy (6)

Sell (1)

IBEX 35

8,655.40

-105.50 (-1.20%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (9)

BASF SE NA O.N.

61.660

-1.425 (-2.26%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (8)

Sell (0)

Bayer AG NA

45.23

+0.16 (+0.36%)

Summary

↑ Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (0)

Sell (10)

Allianz SE VNA O.N.

183.86

-6.37 (-3.35%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (5)

Sell (4)

Adidas AG

280.52

-1.08 (-0.38%)

Summary

Neutral

Moving Avg:

Buy (9)

Sell (3)

Indicators:

Buy (2)

Sell (6)

Deutsche Lufthansa AG

8.664

+0.454 (+5.53%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (5)

Sell (3)

Siemens AG Class N

142.26

-6.50 (-4.37%)

Summary

Sell

Moving Avg:

Buy (3)

Sell (9)

Indicators:

Buy (1)

Sell (5)

Deutsche Bank AG

10.230

-0.850 (-7.67%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (2)

Sell (5)

 EUR/USD1.1729Neutral
 GBP/USD1.3662Neutral
 USD/JPY109.40↑ Buy
 AUD/USD0.7257↑ Buy
 USD/CAD1.2814↑ Sell
 EUR/JPY128.31↑ Buy
 EUR/CHF1.0884↑ Buy
 Gold1,765.00↑ Sell
 Silver22.258Neutral
 Copper4.1307↑ Buy
 Crude Oil WTI70.48↑ Buy
 Brent Oil74.24↑ Buy
 Natural Gas4.935Sell
 US Coffee C182.30↑ Sell
 Euro Stoxx 504,043.63↑ Sell
 S&P 5004,357.73↑ Buy
 DAX15,132.06↑ Buy
 FTSE 1006,903.91Neutral
 Hang Seng24,099.14↑ Buy
 Small Cap 20002,178.78↑ Buy
 IBEX 358,655.40↑ Sell
 BASF61.660↑ Buy
 Bayer45.23↑ Sell
 Allianz183.86↑ Buy
 Adidas280.52Neutral
 Lufthansa8.664Neutral
 Siemens AG142.26Sell
 Deutsche Bank AG10.230↑ Sell
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank5,650/ 5,700
(0/ 0) # 856
SJC HCM5,615/ 5,680
(0/ 0) # 836
SJC Hanoi5,615/ 5,682
(0/ 0) # 838
SJC Danang5,615/ 5,682
(0/ 0) # 838
SJC Nhatrang5,615/ 5,682
(0/ 0) # 838
SJC Cantho5,615/ 5,682
(0/ 0) # 838
Cập nhật 21-09-2021 05:16:54
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Ngoại tệMua vàoBán ra
USD22.645,0022.875,00
EUR25.997,5927.350,60
GBP30.426,3531.697,56
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KRW16,5320,13
Cập nhật lúc 18:51:42 20/09/2021
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