Escalating tensions between two of the largest economies of the world, U.S. and China, reached another level at the beginning of this month after President Trump announced an increase in tariffs on $200 billion of Chinese goods from 10% to 25%. Further, he also threatened to apply 25% tariffs on the remaining imports from China worth around $300 billion.
However, according to chief U.S. economist at Nomura - Lewis Alexander, levying 25% tariff on all Chinese goods entering American borders is likely to hurt U.S. economic growth especially when the economy is already showing signs of a slowdown in the recent months.
He emphasized that the import tariffs are majorly paid by the American importers and the American consumers rather the Chinese, therefore it can result into core inflation in America growing by 0.5% point over the next 12 months.
He further added that owing to this tariff hike the likely impact on U.S. economic growth is how trade developments affect business confidence and investments in the coming months.
The trade war, according to the research published by the New York Federal Reserve Bank, is likely to cost a typical American household $831 per year.
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where BABA advanced for three days, in of 268 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The Momentum Indicator moved below the 0 level on March 22, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on BABA as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for BABA turned negative on March 15, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 53 similar instances when the indicator turned negative. In of the 53 cases the stock turned lower in the days that followed. This puts the odds of success at .
BABA moved below its 50-day moving average on March 22, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for BABA crossed bearishly below the 50-day moving average on March 27, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BABA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.292) is normal, around the industry mean (17.720). P/E Ratio (13.492) is within average values for comparable stocks, (71.108). Projected Growth (PEG Ratio) (0.557) is also within normal values, averaging (3.234). Dividend Yield (0.014) settles around the average of (0.030) among similar stocks. P/S Ratio (1.449) is also within normal values, averaging (4.178).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. BABA’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BABA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
an online and mobile commerce company
Industry InternetRetail