Alibaba Group Holding Ltd (NYSE:BABA) is ranked as a Strong Buy using the stock evaluator from Portfolio Grader, which incorporates Louis Navellier's investing system. BABA has maintained this ranking for 6 months.
BABA is one of the 703 companies in the GICS Information Technology sector and is a constituent of the 130 company Internet Software & Services GICS industry group within this sector. BABA's market value is $488.7 billion which places it in the top 10% of its industry group The stock's current Portfolio Grader score places it 1 among the 130 companies in this industry group, positioning it among the leaders.
Portfolio Grader currently ranks the Information Technology sector number 4 among the 12 sectors in its universe putting it in the top half of all the GICS sectors. The Internet Software & Services industry group is ranked 14 among the 69 industry groups within the GICS sectors, placing it above-average in terms of the Navellier scoring system.
BABA has achieved well above-average scores in 5, and above-average scores in 2 of the 8 fundamental areas analyzed by Portfolio Grader in the ranking of company stocks.
The company's operational scores are a source of strength with a ranking for sales growth, operating margin and earnings growth that are well above average. Scores for visibility of earnings are superior with a ranking for earnings revisions, earnings surprises and earnings momentum that are discernibly better than average. BABA's ranking for return on equity is significantly better than its industry group average but its grade for cash flow is below-average. Based on these fundamental scores, Alibaba Group Holding places in the top decile of the industry group.
Portfolio Grader quantitatively gauges BABA's shares using the Navellier Proprietary Quantitative Score. This metric looks at BABA's shares from the viewpoint of risk/reward. This exclusive scoring system assesses the relative value of BABA's shares based on the current price of the shares relative to its peers, the market and risk associated with its industry and sector groups. Using this risk/reward calculation, the company currently scores well above-average in its industry group compared to its peers.
Louis Navellier's proprietary Portfolio Grader stock ranking system assesses roughly 5,000 companies every week based on a number of fundamental and quantitative measures. Stocks are given a letter grade based on their results, with A being 'strong buy' and F being 'strong sell'. Explore the tool here.
Commentary provided by UpTick Data Technologies.