1. Alibaba Group Holding Limited (NYSE:BABA)
PE as of March 26: 13.35
Number of Hedge Fund Holders: 116
Among its many businesses, Alibaba Group Holding Limited (NYSE:BABA) has several retail businesses, including Taobao (a digital retail platform), Freshippo (a retail platform for groceries), AliExpress (a retail marketplace), Intime Retail (department stores, shopping centers, etc.), and others.
As of March 26, Alibaba Group Holding Limited (NYSE:BABA) has a PE ratio of 13.35. 18 Wall Street analysts have covered the stock over the past three months, and 15 analysts keep a Buy-equivalent rating on the stock. As of March 26, the average price target of $105.69 represents an upside of 47.57% from the last price of $71.62.
In the fourth quarter of 2023, 116 hedge funds had stakes in Alibaba Group Holding Limited (NYSE:BABA), with total positions worth $3.587 billion. This is compared to 110 funds with positions worth $3.36 billion in the previous quarter. As of December 31, 2023, Appaloosa Management LP is the most dominant shareholder in the company and has a position worth $337.168 million. Alibaba Group Holding Limited (NYSE:BABA) takes the top spot on our list of most undervalued retail stocks to buy now.
Baron Funds stated the following regarding Alibaba Group Holding Limited (NYSE:BABA) in its fourth quarter 2023 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third-party online payment provider. Shares of Alibaba were down in the fourth quarter due largely to the delay of the previously announced spin-off of its cloud division. Quarterly results were roughly in line with Street expectations, with strength in profitability. We retain conviction that Alibaba is well positioned to benefit from the ongoing growth in online commerce and cloud development in China. While the company is seeing early progress in its efforts to re-invigorate customer engagement and retention as well as merchant investment initiatives, we believe this investment will likely take some time to flow through to accelerating earnings growth. As such, we remain investors but have reduced our position as we monitor further progress.”
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