China-Based Baozun Beats Again, Stock Soars

A short squeeze could push BZUN stock even higher

Managing Editor
Mar 6, 2018 at 10:10 AM
facebook twitter linkedin


Retail stock Target Corporation (NYSE:TGT) and e-commerce solutions provider Baozun Inc (NASDAQ:BZUN) are trending in opposite directions this morning, after the companies reported vastly different fourth-quarter earnings results. We'll dig into TGT and BZUN stocks below.

Target Stock Falls After Earnings Miss

Target stock is down 2.8% to trade at $73.03, after the retailer's fourth-quarter earnings miss and weak current-quarter outlook overshadow strong sales for the holiday period. In response, TGT shares are again testing their 50-day moving average, which has served as support since late November. Despite the drop today, the security is still up roughly 30% year-over-year. 

Analysts have yet to weigh in on the stock following the earnings update, but that could be because most are already bearish. Of the 18 brokerage firms in coverage, only four consider the security worth buying. The average 12-month price target of $76.97, meanwhile, represents just a 6.3% premium.

Baozun Stock Nabs Record High After Upbeat Results

Baozun stock is up 18% at $43.38 and earlier hit a record high of $43.94. This comes after the company topped top- and bottom-line estimates for the fourth quarter and issued strong first-quarter guidance. BZUN has more than tripled in value over the past year.

A short squeeze could provide even more fuel to the equity's run. Short interest fell by 17.3% during the last two reporting periods to 6.98 million shares, the lowest point since Nov. 1. This accounts for a whopping 20% of BZUN's total available float, and at the stock's' average daily trading volume, represents nearly four days of pent-up buying power. 

What This Election Year Means for Stocks

Ipad with I voted sticker

  


 
Special Offers from Schaeffer's Trading Partners