What Makes Alibaba (BABA) a Good Fit for 'Trend Investing'

Core Viewpoint - The article emphasizes the importance of timing and sustainability in stock trends for successful short-term investing, highlighting that sound fundamentals and positive earnings revisions are crucial for maintaining momentum in stock prices [1][2]. Group 1: Stock Performance - Alibaba (BABA) has shown a solid price increase of 6.6% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - Over the last four weeks, BABA's price has increased by 25.6%, suggesting that the upward trend is still intact [5]. - BABA is currently trading at 81.2% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - BABA holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks averaging a +25% annual return since 1988 [7]. Group 3: Investment Strategy - The "Recent Price Strength" screen is a useful tool for identifying stocks like BABA that are on an uptrend supported by strong fundamentals [3]. - Investors are encouraged to explore over 45 Zacks Premium Screens tailored to different investing styles to find potential winning stocks [8].