Here's Why Alibaba (BABA) is a Strong Value Stock

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  • May 14, 2025

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

Alibaba (BABA)

Alibaba Group Holding is one of the leading e-commerce giants in China. Over the last few years, the company has transformed itself from being a traditional e-commerce company to a conglomerate that has businesses ranging from logistics and food delivery to cloud computing.

BABA boasts a Value Style Score of B and VGM Score of B, and holds a Zacks Rank #2 (Buy) rating. Shares of Alibaba are trading at a forward earnings multiple of 12X, as well as a PEG Ratio of 0.4, a Price/Cash Flow ratio of 12.5X, and a Price/Sales ratio of 2.3X.

Many value investors pay close attention to a company's earnings as well. For BABA, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.12 to $8.92 per share for 2025. Per share BABA boasts an average earnings surprise of 1.5%.

Investors should take the time to consider BABA for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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Alibaba Group Holding Limited (BABA) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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