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ZLAB - A stock that you all should consider buying
ZLAB is a Chinese Bio-Pharma company that traded as high as 193.54 (4 years ago) and is now trading at 34.00 (with a low made 16 months ago at 13.48.The stock went down because the company being a Bio-Pharma company developing new medicines, was always in the red (re earnings and expenses). Nonetheless, during this time, the company has been successful in developing new medicines that in some cases have now been designated by China as "innovative" and likely to become established as needed medicines for things like Cancer, when all phases have shown success.
Some 2 years ago (when the stock got down to the lows), it was because the company required additional funds for generating sales of its products. That is now mostly over as some of its medicines are now starting to be used.
This BioPharma company has a market capitalization of $4.07 billion dollars, meaning that it is the 23rd largest Biopharma company in China.
Here is an AI generated future outlook for the company:
ZLAB has a positive future outlook with analysts projecting strong revenue growth and potential profitability within the next few years. Analysts are optimistic about the company's growth prospects, citing its expanding commercial portfolio, strong pipeline, and strategic focus o both the Chinese and global markets.
Citi has a buy rating on the company with a 12-month price target of $66
Chart-wise, since the low was made back in April 2024, the chart shows a clear up channel with 4 weekly closing points showing the bottom of the channel being presently at 33.22. The top of the channel has 2 points on it, and it shows the top of the channel presently being around the $50, a level that should be reached within the next 2-4 months.
The stock is presently oversold, meaning it is ready to buy now.
A weekly close below 32.73 would break the bottom of the channel, meaning that a purchase around here would offer a risk of approximately $125, versus a profit potential of $3200 (per 100 shares).
In my opinion, this is a BUY here and now.
Good Luck to all of you.