Alibaba Group Holding Limited (NYSE:BABA) is one of the best performers on the stock market today. At current price of $179.71, the shares have already added 4.87 points (2.78% higher) from its previous close of $174.84. Should you buy or avoid them? The stock sets an active trading volume day with a reported 27663530 contracts so far this session. BABA shares had a relatively better volume day versus average trading capacity of 13.29 million shares, but with a 0.75 billion float and a -3.63% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for BABA stock indicates that the average analyst price target is $207.57 per share. This means the stock has a potential increase of 15.5% from where the BABA share price has been trading recently which is between $171.48 and $175.15. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $123.
The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Can Alibaba Stock Run to $200 on Earnings Beat?” and dated May 15, 2019.
During the recent trading session for Alibaba Group Holding Limited (NYSE:BABA), the company witnessed their stock drop by $-0.57 over a week and tumble down $-6.76 from the price 20 days ago. When compared to their established 52-week high of $211.7, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 06/05/18. The recent low of $129.77 stood for a -15.11% since 12/24/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.26 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.
Looking at the current readings for Alibaba Group Holding Limited, the two-week RSI stands at 46.13. This figure suggests that BABA stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current BABA readings is similarly very revealing as it has a stochastic reading of 21.69% at this stage. This figure means that BABA share price today is being overbought.
Technical chart claims that Alibaba Group Holding Limited (BABA) would settle between $176.17/share to $177.49/share level. However, if the stock price goes below the $172.5 mark, then the market for Alibaba Group Holding Limited becomes much weaker. If that happens, the stock price might even plunge as low as $170.15 for its downside target. The stock is currently in the red zone of MACD, with the indicator reading -5.97. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.
Analysts at KeyBanc Capital Markets lifted target price for shares of BABA but were stick to Overweight recommendation for the stock in their opinion released on May 07. The price target has been raised from $210 to $240. SunTrust analysts again handed out a Buy recommendation to Alibaba Group Holding Limited (NYSE:BABA) stock but they lifted target price for the shares in a flash note issued to investors on January 31. The target price has been raised from $180 to $200. Analysts at Stifel are sticking to their Buy stance. However, on January 31, they lifted price target for these shares to $180 from $175.
BABA equity has an average rating of 1.47, with the figure leaning towards a bullish end. 49 analysts who tracked the company were contacted by Reuters. Amongst them, 0 rated the stock as a hold while the remaining 49 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 49 analysts rated Alibaba Group Holding Limited (NYSE:BABA) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.
Moving on, BABA stock price is currently trading at 26.42X forward 12-month Consensus EPS estimates, and its P/S ratio is 9.02 while for the average stock in the same group, the multiple is 6.24. Alibaba Group Holding Limited current P/E ratio of 45.42 means it is trading at a discount against its industry’s 46.64. In the past 5 years, this ratio for the stock has been fluctuating between 18.27 and 53.42.