There are other bits of good news that could boost the stock’s value in the near term: China has begun relaxing its COVID-19 controls, putting some life back in consumer spending; the government crackdown on big tech firms appears to be at an end; U.S. audits of New York-listed stocks is now complete, and results are pending; and Ant Group has grown its capital base, giving it the ability to expand its consumer lending business.
Of the 44 analysts covering the stock, 39 have Buy or Strong Buy ratings. At a recent share price of around $71.30, the upside potential based on a median price target of $137.00 is about 92%. At the high price target of $218.00, the upside potential is 206%.
For Alibaba’s second quarter of fiscal 2023, analysts are expecting revenue of $29.63 billion, which would be down 3.4% sequentially and 5% lower year over year. Adjusted EPS are expected to come in at $1.64, down 6.3% sequentially and by 5.7% year over year. For the full fiscal year that ends in March, Alibaba is expected to report EPS of $7.26, down 12.6%, on sales of $127.99 billion, down 4.9%.
Alibaba’s stock trades at 9.8 times expected 2023 EPS, 8.4 times estimated 2024 earnings of $8.48 and 7.4 times estimated 2025 earnings of $9.66 per share. The stock’s 52-week trading range is $58.01 to $169.94. Alibaba does not pay a dividend, and total shareholder return for the past year was negative 57.2%.
Kohl’s
Department store operator Kohl’s Corp. (NYSE: KSS) has posted a 12-month share price decrease of about 44%. CEO Michelle Gass will leave the company on December 2 to take her place at the head of the line to become CEO of Levi Strauss. Gass had been looking to leave Kohl’s for months following a couple of earlier attempts by activist investors to replace her. Gass, who worked at Starbucks for 17 years, also was considered to lead the coffee brewer but lost out to Laxman Narasimhan in September. Kohl’s currently is searching for a new chief executive to replace Gass.
Of 17 analysts covering the stock, just three rate the shares at Buy, and 11 have Hold ratings. At a share price of around $32.30, the stock trades above its median price target of $30.00. At the high price target of $54.00, the upside potential is about 67.2%.
For the retailer’s third quarter of fiscal 2023, analysts are looking for revenue of $4.06 billion, up 5.1% sequentially but down 7.1% year over year. Adjusted EPS are forecast at $0.75, down 32.5% sequentially and by 54.4% year over year. For the full fiscal year ending in January, analysts currently forecast EPS of $3.07, down 58.1%, on sales of $17.6 billion, down 4.7%.
Kohl’s stock trades at 10.4 times expected 2023 EPS, 9.0 times estimated 2024 earnings of $3.54 and 8.1 times estimated 2025 earnings of $3.92 per share. The stock’s 52-week range is $24.61 to $64.38. Kohl’s pays an annual dividend of $2.00 (yield of 6.4%). Total shareholder return over the past year was negative 42.7%.
Macy’s
Shares of Macy’s Inc. (NYSE: M) have tumbled by nearly 32% over the past 12 months, reaching a 52-week low in late September. Since then, the stock has added about 40%. Last month, the company opened a Toys R Us shop in all its stores, just in time for the holiday season. The company teamed up with WHP Global, which owns the rights to the Toys R Us name, to offer toys under the brand name last year. Macy’s reset expectations for this year after reporting second-quarter results and succeeded in setting the bar lower and easier to clear.
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