Alibaba (BABA) currently holds an average brokerage recommendation (ABR) of 1.05, indicating a consensus leaning between Strong Buy and Buy, based on assessments from 21 brokerage firms. Among these recommendations, 20 are categorized as Strong Buy, while 1 is rated as Buy, representing 95.2% and 4.8% of all recommendations respectively.
Despite the favorable ABR, recent trends show a decline in analysts’ earnings estimates for Alibaba, with a Zacks Consensus Estimate decreasing by 2.7% over the past month to $10.62. This decline has led to a Zacks Rank of #4 (Sell) for the company, suggesting caution for potential investors, as the positive ratings may not align with actual price performance.
Investors are advised to consider the discrepancy between ABR and Zacks Rank measures, as brokerage recommendations can exhibit a positive bias due to vested interests, making Zacks Rank a potentially more reliable indicator of short-term stock performance.
