Alibaba is achieving strong double-digit revenue growth in each business segment.
The company's segments are achieving higher growth than the markets that they operate in.
The stock price has been held back from the trade war and now the coronavirus might create a buy-the-dip opportunity.
Alibaba (BABA) looks like a promising growth stock for the 2020s. The company has a diversified combination of growing businesses. In fact, all four of its segments are growing at strong, double-digit percentage rates because they are all in growing markets. As a result, the company's overall revenue and earnings growth are expected to achieve double-digit gains for FY20, FY21 (consensus) and probably for additional years.
With that in mind, I see Alibaba as a stock that is likely to outperform the broader market as measured by the S&P 500 (SPY) through at least the first half of the 2020s. The coronavirus could create a better entry point in the short-term.
The article is for informational purposes only (not a solicitation to buy or sell stocks). David is not a registered investment adviser. Kirk Spano is an RIA. Investors should do their own research or consult a financial adviser to determine what investments are appropriate for their individual situation. This article expresses my opinions and I cannot guarantee that the information/results will be accurate. Investing in stocks involves risk and could result in losses.
Disclaimer:This and other personal blog posts are not reviewed, monitored or endorsed by
TalkMarkets. The content is solely the view of the author and TalkMarkets is not
responsible for the content of this post in any way. Our curated content which is
handpicked by our editorial team may be viewed here.
Comments
Log in or sign up to join the conversation.