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Baozun Inc. (BZUN) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·3-min read

Baozun Inc. (BZUN) closed the most recent trading day at $42.80, moving +1.76% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.72%. At the same time, the Dow added 0.89%, and the tech-heavy Nasdaq gained 1.47%.

Prior to today's trading, shares of the company had lost 0.24% over the past month. This has lagged the Computer and Technology sector's gain of 7.08% and the S&P 500's gain of 5.85% in that time.

Investors will be hoping for strength from BZUN as it approaches its next earnings release.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.14 per share and revenue of $1.28 billion, which would represent changes of +32.56% and +21.98%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for BZUN. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. BZUN is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, BZUN is currently trading at a Forward P/E ratio of 36.9. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 36.9.

Also, we should mention that BZUN has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 2.36 at yesterday's closing price.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 194, putting it in the bottom 24% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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Zacks Investment Research