Baozun AI (BZUN) is set to report its Q4 earnings on March 22, 2023, and according to analyst estimates, the company is expected to report a sharp drop in earnings per share (EPS) of about 579% to $4.6 per share. This news comes after the company reported a disappointing Q3 earnings report on September 30, 2022, where it missed analyst estimates by a wide margin, reporting a loss of -96 cents per share compared to an estimated profit of 14 cents per share.
Despite the expected drop in EPS, BZUN's valuation metrics appear to be within normal values compared to its industry peers. Its price-to-book (P/B) ratio of 0.502 is around the industry mean of 6.078, and its P/E ratio of 18.797 is also within average values for comparable stocks, which have a P/E ratio of 106.686. Its projected growth (PEG ratio) of 0.000 is also within normal values, averaging 2.779, and its dividend yield of 0.000 is in line with the average of 0.041 among similar stocks. Finally, its price-to-sales (P/S) ratio of 0.280 is also within normal values, averaging 31.376.
BZUN's market capitalization currently sits at $325.15 million, with 275.54K shares outstanding. However, the company's stock price has been on a downward trend, falling by 4.23% for three consecutive days on March 20, 2023. This trend is viewed as bearish, and investors should keep an eye on the stock for future declines. Looking at historical data, in situations where BZUN declined for three days, the price further declined in 286 out of 331 cases within the following month. Therefore, the odds of a continued downward trend are estimated to be 86%.
While BZUN's expected earnings report may not be promising, its valuation metrics suggest that the company's stock is currently trading within normal values compared to its industry peers. However, the recent downward trend in its stock price may indicate potential further declines in the near future.