Friday's Market Watch: BABA, PEP, ULTA, APLD, CAT Stocks in Focus

Stock index futures recovered slightly on Friday after the July PCE report met expectations. Five stocks to watch include Alibaba (BABA), up 4.4% in premarket trade, as the firm's ADS was boosted by a favorable report. PepsiCo (PEP), Ulta Beauty (ULTA), Applied Industrial Technologies (APLD), and Caterpillar (CAT) are also worth monitoring.

Stock index futures rebounded slightly on Friday after the July PCE report met expectations. Among the notable movers, Alibaba Group (BABA) saw its American Depositary Shares (ADS) rise by 4.4% in premarket trading, driven by a favorable earnings report. The Chinese e-commerce and cloud-computing giant posted a mixed fiscal first-quarter, with cloud growth outperforming expectations. Alibaba's Cloud Intelligence revenue increased by 26% to 33.3 billion yuan, marking a significant acceleration from the previous quarter [1].

The tech giant reported an adjusted earnings per ADS of 14.75 yuan, down 10% year-over-year but exceeding analyst forecasts. Sales increased by 2%, totaling 247.65 billion yuan, although this was below prior estimates. Alibaba's stock performance was further boosted by reports of the company developing a more versatile AI chip, indicating a strategic move to enhance its cloud computing capabilities [1].

PepsiCo (PEP) also drew investor attention, with its stock price up in premarket trading. Analysts using the two-stage free cash flow to equity model estimate PepsiCo's fair value at $177, suggesting the stock is trading close to its estimated fair value. The DCF model, which discounts future cash flows to today's value, indicated a 17% discount to the current share price of $148. This valuation method, while not infallible, provides a useful perspective on the company's intrinsic value [2].

Other stocks worth monitoring include Ulta Beauty (ULTA), Applied Industrial Technologies (APLD), and Caterpillar (CAT). These companies have shown varying degrees of performance and growth potential, making them interesting for investors to watch in the coming days.

References:
[1] https://www.investors.com/news/technology/alibaba-stock-baba-news-earnings-nvidia-2025/
[2] https://finance.yahoo.com/news/look-intrinsic-value-pepsico-inc-140008513.html