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

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Baozun Inc. (BZUN - Free Report) closed at $40.66 in the latest trading session, marking a -1.5% move from the prior day. This change lagged the S&P 500's 0.91% gain on the day. Elsewhere, the Dow gained 0.85%, while the tech-heavy Nasdaq added 0.59%.

Prior to today's trading, shares of the company had gained 21.16% over the past month. This has outpaced the Computer and Technology sector's gain of 8.52% and the S&P 500's gain of 5.26% in that time.

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

BZUN's full-year Zacks Consensus Estimates are calling for earnings of $1.14 per share and revenue of $1.28 billion. These results would represent year-over-year changes of +32.56% and +21.98%, respectively.

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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 7.55% higher. BZUN is currently a Zacks Rank #1 (Strong Buy).

Digging into valuation, BZUN currently has a Forward P/E ratio of 36.21. Its industry sports an average Forward P/E of 34.46, so we one might conclude that BZUN is trading at a premium comparatively.

Investors should also note that BZUN has a PEG ratio of 1.05 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computers - IT Services industry currently had an average PEG ratio of 2.14 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 215, putting it in the bottom 16% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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