Many stocks have been testing new highs in 2020, and one of the most notable is Zai Lab Limited (ZLAB). Currently, ZLAB is trading at $74.06 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $76.20.
To add more color to this target, the company’s high over the last year is $76.39 and the low is $28.00. Over the last 52 weeks, ZLAB is down -3.04% while the S&P 500 is down -0.75%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, ZLAB reported a profit of $4.64 million. Zai Lab Limited also saw revenues increase to $4.64 million. In addition, ZLAB has free cash flow of -$191.01 million as of 12-2019 The company’s EBITDA came in at $5.86 million which compares well with its peers.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. ZLAB has a short ratio of 4.64 and outstanding shares of 67.35M.
ZLAB has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.49 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -3.03. Zai Lab Limited ZLAB also noted assets of $360.61 million at the end of the last quarter. Investors should also keep an eye on sector updates as ZLAB has historically followed its peers on positive news.
All told, Zai Lab Limited ZLAB has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ZLAB represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Zai Lab Limited ZLAB is now commanding a market cap of 5.66B and a float of 68.97M. ZLAB is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of ZLAB stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in ZLAB, either long or short, and we have not been compensated for this article.