Tag Archives: BZUN

Mid-Day Market Update: Baozun Rises Following Q1 Results; Jounce Therapeutics Shares Plummet

Midway through trading Thursday, the Dow traded up 0.15 percent to 24,805.86 while the NASDAQ climbed 0.26 percent to 7,417.56. The S&P also rose, gaining 0.25 percent to 2,729.24.

Leading and Lagging Sectors

On Thursday, the energy shares rose 1.34 percent. Meanwhile, top gainers in the sector included Seadrill Limited (NYSE: SDRL), up 46 percent, and Sanchez Energy Corporation (NYSE: SN) up 8 percent.

In trading on Thursday, real estate shares fell 0.34 percent.

Top Headline

Walmart Inc (NYSE: WMT) reported better-than-expected results for its first quarter.

Walmart said it earned $1.14 per share in the first quarter on revenue of $120.7 billion versus Wall Street's estimate of $1.13 per share on revenue of $120.51 billion.

Walmart U.S. comp sales rose 2.1 percent, comp traffic rose 0.8 percent. Comp sales at Sam's Club rose 3.8 percent on a traffic growth of 5.6 percent. Online sales also grew 33 percent in the quarter which marks a reversal from the prior quarter's disappointing performance in the prior quarter.

Equities Trading UP

Carver Bancorp, Inc. (NASDAQ: CARV) shares shot up 88 percent to $6.88.

Shares of Loxo Oncology, Inc. (NASDAQ: LOXO) got a boost, shooting up 21 percent to $168.56. The biopharmaceutical company that focuses on medicines for patients with genetically defined cancers said its oral presentation of LOXO-292 was selected for the "Best of ASCO" program.

Baozun Inc. (NASDAQ: BZUN) shares were also up, gaining 17 percent to $52.85 after reporting Q1 results.

Equities Trading DOWN

Jounce Therapeutics, Inc. (NASDAQ: JNCE) shares dropped 32 percent to $12.02. Abstract of the Phase 1/2 ICONIC trial that evaluated JTX-2011 monotherapy as well as in combination with nivolumab showed that the company has met its target enrolment in its combination cohorts across four solid tumor types, namely gastric cancer, triple-negative breast cancer, head and neck squamous cell cancer and non-small cell lung cancer.

Shares of J C Penney Company Inc (NYSE: JCP) were down 9 percent to $2.79 after the company reported downbeat Q1 results and lowered its FY2018 guidance.

Syndax Pharmaceuticals, Inc. (NASDAQ: SNDX) was down, falling around 21 percent to $8.76 after the company issued updated results from Phase 2 ENCORE trial of entinostat in combo with KEYTRUDA.

Commodities

In commodity news, oil traded up 0.45 percent to $71.81 while gold traded down 0.22 percent to $1,288.60.

Silver traded up 0.67 percent Thursday to $16.48, while copper rose 0.65 to $3.0905.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 0.49 percent, the Spanish Ibex Index rose 0.83 percent, while Italy’s FTSE MIB Index rose 0.11 percent. Meanwhile the German DAX rose 0.83 percent, and the French CAC 40 climbed 0.67 percent while U.K. shares rose 0.60 percent.

Economics

Initial jobless claims increased 11,000 to 222,000 in the latest week. Economists were projecting claims to total 215,000 last week.

The Philadelphia Fed manufacturing index rose to 34.4 for May, compared to 23.3 in April. Economists expected a reading of 21.9.

The index of leading economic indicators rose 0.4 percent for April.

Domestic supplies of natural gas increased 106 billion cubic feet for the week ended May 11, the U.S. Energy Information Administration reported. Analysts expected a gain of 104 billion cubic feet.

Federal Reserve Bank of Dallas President Robert Kaplan will speak at 1:30 p.m. ET.

Data on money supply for the latest week will be released at 4:30 p.m. ET.

3 Stocks That Could Double Your Money

There’s no question that the stock market is the best way to predictably generate wealth over the long term. But finding the best stocks the market has to offer is easier said than done.

To that end, we asked three top Motley Fool investors to each pick a stock that they believe could double your money. Read on to learn why they like Markel (NYSE:MKL),Baozun (NASDAQ:BZUN), and Constellation Brands (NYSE:STZ).

Man in suit touching line/bar chart indicating gains

IMAGE SOURCE: GETTY IMAGES.

A matter of when it doubles again, not if…

Steve Symington (Markel): Shares of financial holding company Markel have already doubled over the past five years, so it might be tempting to avoid the so-called “mini-Berkshire Hathaway” for fear you’ve missed out on its gains. But with Markel’s relatively modest $15.7 billion market cap — at least compared to Berkshire’s at nearly $490 billion as of this writing — and with the stock trading at a reasonable 1.7 times book value, I think patient investors can still comfortably participate in the lion’s share of Markel’s long-term growth.

To be sure, Markel has three primary segments with which it creates shareholder value: Insurance, Investments, and Markel Ventures, a diversified group of acquired non-insurance, non-investing businesses. Last quarter demonstrated the effectiveness of its approach perfectly, with Markel leaning on the strength of its profitable insurance operations to help offset recent volatility from its investment portfolio.

Even then, Markel co-CEO and Chief Investment Officer Tom Gayner shed light on the temporary nature of the pullback in stocks that has hurt its investment returns, pointing out that while Markel’s equity portfolio was down 1.3% last quarter, it’s still up 216% over the past 21 quarters.

“I would happily sign up for those results for the next five years,” Gayner added. “And we continue to invest each day with the same discipline that has produced such outstanding long-term results.”

A Chinese growth star

Jeremy Bowman (Baozun):One stock that’s already doubled investors’ money in the last year and could do it again is Baozun, a Chinese e-commerce specialist that’s often compared toShopify (NYSE: SHOP). However, while Shopify focuses primarily on software to managing online retail storefronts, Baozun handles everything for its clients big and small, from IT to marketing to fulfillment and customer service. It’s a favorite partner in China for multinational companies like Philips,Nike, andMicrosoft, which benefit from its expertise in Chinese regulations, customs, and practices.

Baozun is the market leader in China with about 25% share of the e-commerce solutions market, nearly three times greater than its nearest competitor,and it’s growing market share and profitability. The company has been pivoting from a direct-sales model to a services one, which has boosted profit margins. Operating profits nearly tripled in the last year to $39.4 million on a 22.4% increase in revenue to $637.7 million.Services revenue, however, jumped 56% in the year, but still makes up less than half of total revenue so there should be plenty of room for profit margins to expand as services become a greater part of the business.

With a market cap of only $2.8 billion today, the company has a tremendous opportunity ahead of it as the Chinese middle class expands and online shopping becomes more popular. Unlike some other e-commerce peers, including Shopify, Baozun is already profitable, and earnings per share should continue to ramp up. In fact, the stock is trading at a P/E of just 26.4 based on next year’s expected earnings per share of $1.82, up from $0.70. Considering the growth path ahead, that looks like a recipe for a stock that could easily double.

Investing in beer and cannabis

Demitri Kalogeropoulos (Constellation Brands): Investors who bought Constellation Brands’ stock a decade ago have seen their holding return a blistering 1,000% in that short time frame. Shares soared as sales and profitability improved, thanks mainly to the runaway success of the alcoholic beverage giant’s imported beer portfolio. I see even more room for growth from here, though.

The beer business isn’t nearly done expanding, after all. Executives are targeting double-digit sales gains for the portfolio due to increased distribution points and innovative product releases like the new Corona Premier, which is the first national extension of the franchise in 25 years.

At the same time, Constellation Brands is laying the groundwork for long-term revenue growth and profitability improvements. It’s nearly finished with a massive expansion project that will see its Mexican beer capacity become far larger and more efficient in the next few years. And early investments in the young cannabis niche have already paid financial dividends, but the real benefits should come further down the line as this market matures and Constellation Brands finds ways to market new beverages in Canada and other areas around the world.

Meanwhile, as they wait for those investments to boost the business, investors can collect hefty direct returns including stock repurchases and a dividend payout that recently increased by 42%.

The bottom line

Of course, we can’t absolutely guarantee that these three stocks will go on to double in value. But between Markel’s proven long-term track record, the enormous opportunity awaiting Baozun as e-commerce grows more popular in China, and Constellation Brands’ enviable beer portfolio and early investments in the cannabis market, we think there’s a great chance they’ll do just that. And we think investors would be wise to put their money to work accordingly.

These 3 Stocks Doubled in 2017. Are They Still Buys?

Having a stock that you own double in price across a year-long period is certainly cause for celebration, but it also presents a good opportunity to take another look at the underlying company and determine whether you still like the investment at its new, elevated price.

To find out whether some of 2017’s top-performing stocks are still worth buying, we asked three Motley Fool investors to shine the spotlight on one of last year’s big winners and determine if its outlook is still bright. Read on to find out whether they think Align Technology(NASDAQ:ALGN), Proto Labs (NYSE:PRLB), and Baozun (NASDAQ:BZUN) have what it takes to keep their winning streaks alive.

A man scratching his head while looking at a large number of arrows pointing left and one large arrow pointing to the right.

Image source: Getty Images.

An ascendant Chinese e-commerce company

Keith Noonan(Baozun):Chinese e-commerce company Baozun saw its stock price rise roughly 162% in 2017. That’s quite the performance, but I think it still has a promising runway for growth. I recently bought shares and expect that the company will continue to perform at a high level and deliver wins for investors on the strength of its competitive advantages and industry tailwinds.

China has the world’s largest e-commerce market, and the growth of online retail is expected to continue at a robust clip. Last year, the value of the country’s online retail market grew roughly 30% to reach $1.1 trillion, and a Goldman Sachs report projects that the market will grow to $1.7 trillion in 2020. That’s the kind of momentum that brands from all over the world are eager to tap into, but they face some crucial obstacles. That’s where Baozun comes in.

The company provides an easy way for international brands to enter the Chinese market and take advantage of the country’s rapid growth. Due to government regulations, many companies are unable to simply sell their products directly to consumers in China, but opting to sell their wares through Baozun’s platform is a relatively easy workaround.The company countsNike, Tapestry, and Microsoft among itsbrand partners, and managed to grow its list of partners from 133 to 152 in its last fiscal year.

Baozun is also in the process of moving its business toward simply connecting its retail partners with customers rather than storing and shipping items itself. That’s a move that should ultimately allow it to deliver substantially better margins while still growing sales at a healthy clip.Baozun’s partnerships with leading e-commerce platforms JD.com and Alibaba also do a lot to reduce the risk that its business will be disrupted by competitors.

With shares trading at roughly 40 times forward earnings, Baozun is priced for growth, but I think the company is in position to deliver and recommend it as a way to benefit from momentum in Chinese e-commerce.

This stock will put a smile on your face

Dan Caplinger (Align Technology): Parents with preteens or teenagers know all too well how common it is for kids to have orthodontic problems. Historically, that’s meant fighting through the pain and social stigma of metal braces, with their ugly design and often long treatment periods. For many adults, traditional braces are simply unacceptable, and that’s part of what initially inspired Align Technology to come out with its Invisalign orthodontic appliances. With its clear, transparent design, Invisalign is far less obtrusive than braces, and Align’s early customers were more than willing to pay the extra cost in order to get that benefit.

As the industry has evolved, younger patients have discovered the value that Invisalign brings, and Align has gone beyond serving adults to focus more on the much larger teen market. That’s yielded dramatic growth, with 40% gains in sales last quarter that pushed earnings higher by nearly the same amount.

Some fear that competition could eventually bring Align’s growth trajectory to an abrupt halt. But so far, that hasn’t happened, and international opportunities could keep the business expanding for a long time to come. Given how popular the products are among orthodontic professionals and the patients who use them, it’s likely that Align Technology stock will keep its investors smiling for a long time to come.

3D printing’s biggest returns for investors

Travis Hoium(Proto Labs):Proto Labs may not be the first company you think of when 3D printing comes to mind, but maybe it should be. The company is a leading supplier of rapid prototyping services for businesses and consumers, including 3D printing and much more. It’s not a printer manufacturer like3D SystemsorStratasys, butrather uses 3D printers, injection molding machines, CNC machines, and other technology to make parts for designers who value the speed and flexibility toprototype parts using multiple methods.

Proto Labs’ innovation was in building a platform for customers to upload digital designs and quickly have them turned into physical parts. In as little as a day, parts can be uploaded, built, and delivered to customers, saving designers the hassle of buying and maintaining equipment like a 3D printer. This innovation has made its financial results turn out far better than those of the 3D printer manufacturers.

In the past year, Proto Labs has generated $57.6 million in net income versus losses of $39.2 million and $77.2 million for Stratasys and 3D Systems, respectively. Both 3D printer manufacturers see Proto Labs’ success and are trying to build their own on-demand manufacturing platforms, but have had little success so far. And given their existing cost structure trying to develop and sell 3D printers, it’s hard to see how they’ll be able to succeed with both on-demand services and printer manufacturing.

With a technology-agnostic business model serving the growing needs of customers who value flexibility in prototype production methods, Proto Labs is well-positioned in the market. The question is whether the stock is a buy at over 60 times trailing earnings. I think first-quarter earnings answered that, with revenue increasing 34.4% to $107.7 million and record net income of $18.1 million. Proto Labs is showing the growth in revenue and industry-leading profitability that proves the value of its business model. With a platform that will be able to expand with the needs of the market, this is a growth stock that I think still has a lot of room to run higher.

These 3 Stocks Doubled in 2017. Are They Still Buys?

Having a stock that you own double in price across a year-long period is certainly cause for celebration, but it also presents a good opportunity to take another look at the underlying company and determine whether you still like the investment at its new, elevated price.

To find out whether some of 2017’s top-performing stocks are still worth buying, we asked three Motley Fool investors to shine the spotlight on one of last year’s big winners and determine if its outlook is still bright. Read on to find out whether they think Align Technology(NASDAQ:ALGN), Proto Labs (NYSE:PRLB), and Baozun (NASDAQ:BZUN) have what it takes to keep their winning streaks alive.

A man scratching his head while looking at a large number of arrows pointing left and one large arrow pointing to the right.

Image source: Getty Images.

An ascendant Chinese e-commerce company

Keith Noonan(Baozun):Chinese e-commerce company Baozun saw its stock price rise roughly 162% in 2017. That’s quite the performance, but I think it still has a promising runway for growth. I recently bought shares and expect that the company will continue to perform at a high level and deliver wins for investors on the strength of its competitive advantages and industry tailwinds.

China has the world’s largest e-commerce market, and the growth of online retail is expected to continue at a robust clip. Last year, the value of the country’s online retail market grew roughly 30% to reach $1.1 trillion, and a Goldman Sachs report projects that the market will grow to $1.7 trillion in 2020. That’s the kind of momentum that brands from all over the world are eager to tap into, but they face some crucial obstacles. That’s where Baozun comes in.

The company provides an easy way for international brands to enter the Chinese market and take advantage of the country’s rapid growth. Due to government regulations, many companies are unable to simply sell their products directly to consumers in China, but opting to sell their wares through Baozun’s platform is a relatively easy workaround.The company countsNike, Tapestry, and Microsoft among itsbrand partners, and managed to grow its list of partners from 133 to 152 in its last fiscal year.

Baozun is also in the process of moving its business toward simply connecting its retail partners with customers rather than storing and shipping items itself. That’s a move that should ultimately allow it to deliver substantially better margins while still growing sales at a healthy clip.Baozun’s partnerships with leading e-commerce platforms JD.com and Alibaba also do a lot to reduce the risk that its business will be disrupted by competitors.

With shares trading at roughly 40 times forward earnings, Baozun is priced for growth, but I think the company is in position to deliver and recommend it as a way to benefit from momentum in Chinese e-commerce.

This stock will put a smile on your face

Dan Caplinger (Align Technology): Parents with preteens or teenagers know all too well how common it is for kids to have orthodontic problems. Historically, that’s meant fighting through the pain and social stigma of metal braces, with their ugly design and often long treatment periods. For many adults, traditional braces are simply unacceptable, and that’s part of what initially inspired Align Technology to come out with its Invisalign orthodontic appliances. With its clear, transparent design, Invisalign is far less obtrusive than braces, and Align’s early customers were more than willing to pay the extra cost in order to get that benefit.

As the industry has evolved, younger patients have discovered the value that Invisalign brings, and Align has gone beyond serving adults to focus more on the much larger teen market. That’s yielded dramatic growth, with 40% gains in sales last quarter that pushed earnings higher by nearly the same amount.

Some fear that competition could eventually bring Align’s growth trajectory to an abrupt halt. But so far, that hasn’t happened, and international opportunities could keep the business expanding for a long time to come. Given how popular the products are among orthodontic professionals and the patients who use them, it’s likely that Align Technology stock will keep its investors smiling for a long time to come.

3D printing’s biggest returns for investors

Travis Hoium(Proto Labs):Proto Labs may not be the first company you think of when 3D printing comes to mind, but maybe it should be. The company is a leading supplier of rapid prototyping services for businesses and consumers, including 3D printing and much more. It’s not a printer manufacturer like3D SystemsorStratasys, butrather uses 3D printers, injection molding machines, CNC machines, and other technology to make parts for designers who value the speed and flexibility toprototype parts using multiple methods.

Proto Labs’ innovation was in building a platform for customers to upload digital designs and quickly have them turned into physical parts. In as little as a day, parts can be uploaded, built, and delivered to customers, saving designers the hassle of buying and maintaining equipment like a 3D printer. This innovation has made its financial results turn out far better than those of the 3D printer manufacturers.

In the past year, Proto Labs has generated $57.6 million in net income versus losses of $39.2 million and $77.2 million for Stratasys and 3D Systems, respectively. Both 3D printer manufacturers see Proto Labs’ success and are trying to build their own on-demand manufacturing platforms, but have had little success so far. And given their existing cost structure trying to develop and sell 3D printers, it’s hard to see how they’ll be able to succeed with both on-demand services and printer manufacturing.

With a technology-agnostic business model serving the growing needs of customers who value flexibility in prototype production methods, Proto Labs is well-positioned in the market. The question is whether the stock is a buy at over 60 times trailing earnings. I think first-quarter earnings answered that, with revenue increasing 34.4% to $107.7 million and record net income of $18.1 million. Proto Labs is showing the growth in revenue and industry-leading profitability that proves the value of its business model. With a platform that will be able to expand with the needs of the market, this is a growth stock that I think still has a lot of room to run higher.