Alibaba Group Holdin
BABA
Delayed Nyse - 12/12 10:00:05 pm
174.64USD
-2.59%

The stock forcefully approaches new pivot levels

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Anas Lozach
Analyst

Strategy published on : 08/09/2017 | 14:56

long trade under condition
Conditional Order Terminated

Entry price : 160$
Target : 170$
Stop-loss : 151.8$
Cancellation Level : 149$
Potential : 6.25%

Shares in Alibaba Group Holding are approaching an important resistance level. The stock's technical chart suggests that this pivot level will be broken.
Summary

● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.


Strengths

● According to sales estimates from analysts polled by Thomson-Reuters, the company is among the best with regard to growth.

● The group's activity appears highly profitable thanks to its outperforming net margins.

● Thanks to a sound financial situation, the firm has significant leeway for investment.

● Historically, the company has been releasing figures that are above expectations.

● Upward revisions of sales forecast reflect a renewed optimism among the analysts covering the stock.

● Over the last twelve months, the sales forecast has been frequently revised upwards.

● For the last 4 months, the company has been enjoying highly positive EPS revisions, which were frequently and significantly raised.

● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.

● Analysts have a positive opinion on this stock. Average consensus recommends overweighting or purchasing the stock.

● The tendency within the weekly time frame is positive above the technical support level at 115.1 USD


Weaknesses

● Stock prices approach a strong long-term resistance in weekly data at USD 157.56.

● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.

● Based on current prices, the company has particularly high valuation levels.

● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 48 times its estimated earnings per share for the ongoing year.

Zonebourse.com 2017
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