NEW YORK (TheStreet) -- Shares of Alibaba (BABA) were lower in mid-afternoon trading on Tuesday ahead of the company's fiscal 2017 second quarter report, due out before the market open on Wednesday.

Analysts surveyed by FactSet are looking for the Chinese e-commerce company to post adjusted earnings of 69 cents per share on revenue of $5.01 billion.

In the same quarter last year, Alibaba reported adjusted earnings of 56 cents per share on revenue of $3.41 billion.

Jefferies said that the Chinese e-commerce sector could benefit in the September quarter from "stronger-than-expected online penetration, deepening lower-tier city/rural penetration [and] strong execution."

The firm is positive on the segment in general and considers Alibaba one of its top picks in the market.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "hold" with a ratings score of C.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

You can view the full analysis from the report here: BABA


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