Pfizer ( PFE) PFE) logo on Pfizer building. Besides the company’s growth factor, Ant Group’s deal with Chinese regulators is a key upside catalyst for the stock. I will not be surprised if BABA stock out-performs in the next few quarters. Broad markets are expensive and investors are looking for value. With two high-growth business segments, BABA stock is trading at an attractive P/E. In addition, there is ample scope for e-commerce penetration in China.ħ Penny Stocks That Have Good Fundamentals It’s worth noting that Alibaba has been reporting strong e-commerce growth from Southeast Asia. With strong top-line growth, the cloud business is positioned to be another cash flow machine for Alibaba Group.Īlibaba’s core commerce business also remained robust with 38% top-line growth. The company’s cloud business reported positive EBITDA for the first time. In February 2021, Alibaba reported third-quarter results for 2020 and there were several positives. With BABA stock currently trading at an attractive P/E 24.3x, it’s a top-pick among cheap stocks. However, the Ant Group is working with regulators and it seems likely that the differences will be ironed out.įurther, specific to Alibaba, robust growth has sustained. A key reason has been the regulatory headwinds bearing down on Ant Financial. Source: Kevin Chen Photography / īABA stock has under-performed compared to other Chinese e-commerce stocks. With low leverage and a liquidity buffer of $7.2 billion, the company is well positioned to benefit from higher commodity prices.Īlibaba ( BABA) BABA) headquarters sign located in Hangzhou China" width="300" height="169"> As of December 2020, the company reported total debt of $6.1 billion and a debt-to-EBITDA ratio of 1.5x. Therefore, the company stands to benefit from higher prices coupled with higher sales volume.įreeport-McMoRan also has a strong financial profile. For the current year, sales are expected to increase to 3.8 billion lbs. Therefore, the rally in copper is backed by fundamental reasons.Īnother factor to note is that the company reported copper sales of 3.2 billion lbs in fiscal year 2020. Freeport-McMoRan estimates that copper consumption in these two sectors will double in the next five years. This has translated into a boom for the renewables and electric vehicle sectors. It’s important to note that there is a global push toward clean energy. If copper continues to trend higher, Freeport-McMoRan is positioned for EBITDA margin expansion and free cash flow upside. Citigroup also has a “bull case” copper price forecast of $12,000/ton. 16, Citigroup upgraded FCX stock to a “buy” rating with a forecast that copper prices are likely to hit $10,000/ton. At a price-to-earnings-ratio of 16.8x, FCX stock is attractive for fresh exposure. However, the big rally does not make the stock expensive. FCX stock has surged 150% in the last six months.
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