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

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Baozun Inc. (BZUN) closed the most recent trading day at $40.54, moving -1.94% from the previous trading session. This change lagged the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.24%.

Heading into today, shares of the company had gained 3.25% over the past month, lagging the Computer and Technology sector's gain of 7.08% and the S&P 500's gain of 5.34% in that time.

BZUN will be looking to display strength as it nears its next earnings release.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.14 per share and revenue of $1.28 billion. These totals would mark changes of +32.56% and +21.98%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for BZUN. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection has moved 7.55% higher. 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 36.26. Its industry sports an average Forward P/E of 36.1, so we one might conclude that BZUN is trading at a premium comparatively.

Also, we should mention that BZUN has a PEG ratio of 1.05. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.3 based on yesterday's closing prices.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% 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.

To follow BZUN in the coming trading sessions, be sure to utilize Zacks.com.


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