Zumiez Story

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ZUMZ -- USA Stock  

USD 27.16  0.17  0.63%

Zumiez Inc is scheduled to announce its earnings today. The next earnings report is expected on the 3rd of December 2020. Because some of us are getting excited about consumer cyclical space, it makes sense to break down Zumiez Inc in greater detail. We will evaluate why recent Zumiez price moves suggest a bounce in October.
Published over two weeks ago
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Would you shadow Zumiez analysts?
The firm maintains a market beta of -0.3291, which attests to possible diversification benefits within a given portfolio. Let's try to break down what Zumiez's beta means in this case. As returns on the market increase, returns on owning Zumiez are expected to decrease at a much lower rate. During the bear market, Zumiez is likely to outperform the market. Although it is extremely important to respect Zumiez Inc historical price patterns, it is better to be realistic regarding the information on equity current price history. The philosophy towards determining future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By examining Zumiez Inc technical indicators, you can presently evaluate if the expected return of 0.0315% will be sustainable into the future. Zumiez Inc right now maintains a risk of 3.36%. Please check out Zumiez Inc expected short fall, day median price, and the relationship between the potential upside and accumulation distribution to decide if Zumiez Inc will be following its historical returns.
What is the right price you would pay to acquire a share of Zumiez? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Zumiez Inc this year

Annual and quarterly reports issued by Zumiez Inc are formal financial statements that are published yearly and quarterly and sent to Zumiez stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Zumiez often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Zumiez utilizes its cash?

To perform a cash flow analysis of Zumiez, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Zumiez is receiving and how much cash it distributes out in a given period. The Zumiez cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Zumiez Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Zumiez reported Net Cash Flow from Operations of 105.64 Million in 2019

Exercise or conversion by Adam Ellis of 2772 shares of Zumiez subject to Rule 16b-3

Legal trades by Zumiez insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Zumiez insider trading alert for exercise of stock option (right to buy) by Adam Ellis, President International, on 15th of September 2020. This event was filed by Zumiez Inc with SEC on 2020-09-15. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Zumiez Investor Appetite?

Earning per share calculations of Zumiez is based on official Zacks consensus of 5 analysts regarding Zumiez's future annual earnings. Given the historical accuracy of 81.69%, the future earnings per share of the company is estimated to be 1.878 with the lowest and highest values of 1.27 and 2.5, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Zumiez a risky opportunity?

Let's check the volatility. Zumiez is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Zumiez (NASDAQ:ZUMZ) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. acquiring a share of a Zumiez stock makes you a part-owner of that company.

Zumiez Inc Current Consensus

Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Zumiez Inc. The Zumiez consensus assessment is calculated by taking the average estimates from all of the analysts covering Zumiez

Strong Buy
2
Hold
3
Strong Buy240.0
Buy00.0
Hold360.0
Sell00.0
Strong Sell00.0

Zumiez current slide is puzzling

Kurtosis just dropped to -0.77, may suggest upcoming price decrease. As of the 10th of September, Zumiez maintains the market risk adjusted performance of 0.136, and Mean Deviation of 2.76. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Zumiez Inc, as well as the relationship between them. Specifically, you can use this information to find out if the company will indeed mirror its model of past data patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Zumiez Inc, which can be compared to its rivals. Please check out Zumiez Inc treynor ratio, as well as the relationship between the potential upside and expected short fall to decide if Zumiez Inc is priced fairly, providing market reflects its latest price of 25.91 per share. Given that Zumiez Inc has jensen alpha of 9.0E-4, we strongly advise you to confirm Zumiez Inc's prevalent market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Zumiez

When is the right time to buy or sell Zumiez Inc? Buying stocks such as Zumiez isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. The inconsistency in the assessment between current Zumiez valuation and our trade advice on Zumiez is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Zumiez.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Zumiez Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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