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Bull of the Day: Kanzhun (BZ)

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A few short quarters ago, a Chinese internet stock was just about the worst place you could have invested any money. Tensions with the US, along with rule changes in Chinese government, made it a very scary place to have any money. But things change in the market and those same stocks which were to be avoided at all costs are looking a bit more attractive. The earnings trends have strengthened and with the risk-on behavior re-entering the market, these stocks could be the next big thing.

Today’s Bull of the Day is one of these stocks. It’s Zacks Rank #1 (Strong Buy) Kanzhun Limited ((BZ - Free Report) ). Kanzhun is a company based in China specializing in online recruitment solutions. The company operates under the BOSS Zhipin brand name through which it offers recruitment services via a mobile application. This platform facilitates the recruitment process between job seekers and employers catering to enterprises and corporations.

Growth is the name of the game here with solid growth forecast for both earnings and revenues over the next year plus. Current year revenue growth is set to come in at 18.45% this year and 26.57% next year. Translated over to the earnings side of the equation, analysts are calling for 96% growth this year and 28.57% next year.

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Our Zacks Consensus Estimate for both the current year and next year have been moving up over the last sixty days. We have seen this year’s number tick up from 46 cents EPS to 49 cents with next year’s number from 62 cents to 63.

The growth is coming from enterprise customers as well as monthly active users. For the second quarter of 2023, average monthly average users was up from 26.5 million a year ago to 43.6 million this year. That’s an increase of 65.4% year-over-year. On the enterprise side, total paid enterprise customers is up 18.4% from 3.5 million in the twelve months ended June 30, 2022 to 4.5 million in the twelve months ended June 30, 2023.


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