Zumiez Inc. (ZUMZ) shares are trading at higher $28.44 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $32.00.
To add more color to this target, the company’s high over the last year is $35.68 and the low is $13.13. Over the last 52 weeks, ZUMZ is down -13.32% while the S&P 500 is up 10.88%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, ZUMZ reported a profit of $90.85 million. Zumiez Inc. also saw revenues increase to $250.39 million. In addition, ZUMZ has free cash flow of $56.98 million as of 07-2020. The company’s EBITDA came in at $39.02 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. ZUMZ has a short ratio of 4.81 and outstanding shares of 22.52M.
ZUMZ has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at 1.74. Zumiez Inc. ZUMZ also noted assets of $936.9 million at the end of the last quarter. Investors should also keep an eye on sector updates as ZUMZ has historically followed its peers on positive news.
All told, Zumiez Inc. ZUMZ has strung together solid data and demonstrated underlying fundamentals. At its current valuation, ZUMZ 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.
Zumiez Inc. ZUMZ is now commanding a market cap of 640.47M and a float of 20.91M. ZUMZ 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 ZUMZ 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 ZUMZ, either long or short, and we have not been compensated for this article.