Trade-Ideas LLC identified

Alibaba Group

(

BABA

) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Alibaba Group as such a stock due to the following factors:

  • BABA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $1.2 billion.
  • BABA traded 232,246 shares today in the pre-market hours as of 7:26 AM.
  • BABA is up 4.5% today from yesterday's close.

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More details on BABA:

Alibaba Group Holding Limited, through its subsidiaries, operates as an online and mobile commerce company in the People's Republic of China and internationally. Currently there are 16 analysts that rate Alibaba Group a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Recommends

The average volume for Alibaba Group has been 18.3 million shares per day over the past 30 days. Alibaba Group has a market cap of $174.0 billion and is part of the services sector and specialty retail industry. Shares are down 14.2% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Alibaba Group as a

hold

. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from the ratings report include:

  • Compared to other companies in the Internet Software & Services industry and the overall market, ALIBABA GROUP HLDG's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • BABA's revenue growth has slightly outpaced the industry average of 14.9%. Since the same quarter one year prior, revenues rose by 23.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although BABA's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average.
  • Net operating cash flow has significantly increased by 140.33% to $2,338.57 million when compared to the same quarter last year. In addition, ALIBABA GROUP HLDG has also vastly surpassed the industry average cash flow growth rate of 2.76%.
  • BABA's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 31.54%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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