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KANZHUN LIMITED Sponsored ADR (BZ) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of KANZHUN LIMITED Sponsored ADR (BZ - Free Report) ? Shares have been on the move with the stock up 16.9% over the past month. The stock hit a new 52-week high of $22.74 in the previous session. KANZHUN LIMITED Sponsored ADR has gained 34.6% since the start of the year compared to the 16.9% move for the Zacks Computer and Technology sector and the 12.7% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 21, 2024, Kanzhun reported EPS of $0.16 versus consensus estimate of $0.13 while it beat the consensus revenue estimate by 2.55%.
For the current fiscal year, Kanzhun is expected to post earnings of $0.82 per share on $1.07 billion in revenues. This represents a 22.39% change in EPS on a 28.19% change in revenues. For the next fiscal year, the company is expected to earn $1.04 per share on $1.35 billion in revenues. This represents a year-over-year change of 27.44% and 26.11%, respectively.
Valuation Metrics
Kanzhun may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Kanzhun has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 27.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 29.9X. On a trailing cash flow basis, the stock currently trades at 39X versus its peer group's average of 23.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Kanzhun currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Kanzhun fits the bill. Thus, it seems as though Kanzhun shares could have a bit more room to run in the near term.
How Does BZ Stack Up to the Competition?
Shares of BZ have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is ODDITY Tech Ltd. (ODD - Free Report) . ODD has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. ODDITY Tech Ltd. beat our consensus estimate by 24.49%, and for the current fiscal year, ODD is expected to post earnings of $1.62 per share on revenue of $633.79 million.
Shares of ODDITY Tech Ltd. have gained 16.6% over the past month, and currently trade at a forward P/E of 23.01X and a P/CF of 31.47X.
The Internet - Software industry is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BZ and ODD, even beyond their own solid fundamental situation.
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KANZHUN LIMITED Sponsored ADR (BZ) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of KANZHUN LIMITED Sponsored ADR (BZ - Free Report) ? Shares have been on the move with the stock up 16.9% over the past month. The stock hit a new 52-week high of $22.74 in the previous session. KANZHUN LIMITED Sponsored ADR has gained 34.6% since the start of the year compared to the 16.9% move for the Zacks Computer and Technology sector and the 12.7% return for the Zacks Internet - Software industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 21, 2024, Kanzhun reported EPS of $0.16 versus consensus estimate of $0.13 while it beat the consensus revenue estimate by 2.55%.
For the current fiscal year, Kanzhun is expected to post earnings of $0.82 per share on $1.07 billion in revenues. This represents a 22.39% change in EPS on a 28.19% change in revenues. For the next fiscal year, the company is expected to earn $1.04 per share on $1.35 billion in revenues. This represents a year-over-year change of 27.44% and 26.11%, respectively.
Valuation Metrics
Kanzhun may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Kanzhun has a Value Score of D. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 27.3X current fiscal year EPS estimates, which is not in-line with the peer industry average of 29.9X. On a trailing cash flow basis, the stock currently trades at 39X versus its peer group's average of 23.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Kanzhun currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Kanzhun fits the bill. Thus, it seems as though Kanzhun shares could have a bit more room to run in the near term.
How Does BZ Stack Up to the Competition?
Shares of BZ have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is ODDITY Tech Ltd. (ODD - Free Report) . ODD has a Zacks Rank of # 1 (Strong Buy) and a Value Score of D, a Growth Score of A, and a Momentum Score of A.
Earnings were strong last quarter. ODDITY Tech Ltd. beat our consensus estimate by 24.49%, and for the current fiscal year, ODD is expected to post earnings of $1.62 per share on revenue of $633.79 million.
Shares of ODDITY Tech Ltd. have gained 16.6% over the past month, and currently trade at a forward P/E of 23.01X and a P/CF of 31.47X.
The Internet - Software industry is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for BZ and ODD, even beyond their own solid fundamental situation.