Is Zai Lab Stock a Good Investment?
Zai Lab Investment Advice | ZLAB |
- Examine Zai Lab's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Zai Lab's leadership team and their track record. Good management can help Zai Lab navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Biotechnology space and any emerging trends that could impact Zai Lab's business and its evolving consumer preferences.
- Compare Zai Lab's performance and market position to its competitors. Analyze how Zai Lab is positioned in terms of product offerings, innovation, and market share.
- Check if Zai Lab pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Zai Lab's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Zai Lab stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Zai Lab is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | About Average | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Zai Lab Stock
Researching Zai Lab's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 51.0% of the company outstanding shares are owned by institutional investors. The book value of Zai Lab was at this time reported as 6.8. The company recorded a loss per share of 2.8. Zai Lab had not issued any dividends in recent years.
To determine if Zai Lab is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Zai Lab's research are outlined below:
| Zai Lab generated a negative expected return over the last 90 days | |
| Zai Lab has high historical volatility and very poor performance | |
| Zai Lab has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 266.72 M. Net Loss for the year was (334.62 M) with profit before overhead, payroll, taxes, and interest of 32.97 M. | |
| Zai Lab currently holds about 1.26 B in cash with (198.18 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 13.1. | |
| Zai Lab has a poor financial position based on the latest SEC disclosures | |
| Latest headline from finance.yahoo.com: Heres Why Analysts Are Bullish on Zai Lab Limited |
Zai Lab Quarterly Liabilities And Stockholders Equity |
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Zai Lab uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Zai Lab. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Zai Lab's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 27th of February 2024 Upcoming Quarterly Report | View | |
| 14th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 27th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Zai Lab's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Zai Lab's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-11-28 | 2018-09-30 | -0.4 | -0.33 | 0.07 | 17 | ||
2024-08-06 | 2024-06-30 | -0.71 | -0.8 | -0.09 | 12 | ||
2020-03-19 | 2019-12-31 | -0.59 | -0.68 | -0.09 | 15 | ||
2018-05-02 | 2018-03-31 | -0.18 | -0.29 | -0.11 | 61 | ||
2024-02-27 | 2023-12-31 | -0.86 | -1.0 | -0.14 | 16 | ||
2021-11-09 | 2021-09-30 | -1.18 | -1.01 | 0.17 | 14 | ||
2019-05-29 | 2019-03-31 | -0.44 | -0.6717 | -0.2317 | 52 | ||
2022-05-10 | 2022-03-31 | -1.2 | -0.9 | 0.3 | 25 |
Zai Lab Target Price Consensus
Zai target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Zai Lab's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 11 | Strong Buy |
Most Zai analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Zai stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Zai Lab, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationZai Lab Target Price Projection
Zai Lab's current and average target prices are 26.63 and 52.39, respectively. The current price of Zai Lab is the price at which Zai Lab is currently trading. On the other hand, Zai Lab's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Target Price
Analyst Consensus On Zai Lab Target Price
Zai Lab Analyst Ratings
Zai Lab's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Zai Lab stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Zai Lab's financials, market performance, and future outlook by experienced professionals. Zai Lab's historical ratings below, therefore, can serve as a valuable tool for investors.Know Zai Lab's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Zai Lab is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Zai Lab backward and forwards among themselves. Zai Lab's institutional investor refers to the entity that pools money to purchase Zai Lab's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Blackrock Inc | 2024-09-30 | 648.7 K | Fmr Inc | 2024-09-30 | 644.9 K | Superstring Capital Management Lp | 2024-09-30 | 626.9 K | Connor Clark & Lunn Inv Mgmt Ltd | 2024-09-30 | 604.2 K | Adar1 Capital Management Llc | 2024-09-30 | 532.5 K | Allianz Asset Management Ag | 2024-09-30 | 521.8 K | Cam Group Holding A/s | 2024-09-30 | 500 K | Candriam Luxembourg S.c.a. | 2024-09-30 | 390 K | Acadian Asset Management Llc | 2024-09-30 | 257.6 K | Hhg Plc | 2024-09-30 | 8.8 M | Wellington Management Company Llp | 2024-09-30 | 8.4 M |
Zai Lab's market capitalization trends
The company currently falls under 'Mid-Cap' category with a current market capitalization of 2.87 B.Market Cap |
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Zai Lab's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.30) | (0.31) | |
| Return On Capital Employed | (0.40) | (0.42) | |
| Return On Assets | (0.29) | (0.31) | |
| Return On Equity | (0.48) | (0.46) |
Determining Zai Lab's profitability involves analyzing its financial statements and using various financial metrics to determine if Zai Lab is a good buy. For example, gross profit margin measures Zai Lab's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Zai Lab's profitability and make more informed investment decisions.
Please note, the presentation of Zai Lab's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Zai Lab's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Zai Lab's management manipulating its earnings.
Evaluate Zai Lab's management efficiency
Zai Lab has return on total asset (ROA) of (0.2083) % which means that it has lost $0.2083 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.3498) %, meaning that it created substantial loss on money invested by shareholders. Zai Lab's management efficiency ratios could be used to measure how well Zai Lab manages its routine affairs as well as how well it operates its assets and liabilities. As of January 22, 2025, Return On Tangible Assets is expected to decline to -0.31. In addition to that, Return On Capital Employed is expected to decline to -0.42. At present, Zai Lab's Net Tangible Assets are projected to increase significantly based on the last few years of reporting. The current year's Other Current Assets is expected to grow to about 27.8 M, whereas Total Assets are forecasted to decline to about 754.6 M.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 7.41 | 5.48 | |
| Tangible Book Value Per Share | 7.26 | 5.42 | |
| Enterprise Value Over EBITDA | 1.28 | 1.34 | |
| Price Book Value Ratio | 0.29 | 0.30 | |
| Enterprise Value Multiple | 1.28 | 1.34 | |
| Price Fair Value | 0.29 | 0.30 | |
| Enterprise Value | -596.8 M | -566.9 M |
Evaluating the management effectiveness of Zai Lab allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Zai Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.
Beta 1.036 |
Basic technical analysis of Zai Stock
As of the 22nd of January, Zai Lab maintains the Market Risk Adjusted Performance of (1.55), mean deviation of 2.58, and Downside Deviation of 3.82. Relative to fundamental indicators, the technical analysis model lets you check existing technical drivers of Zai Lab, as well as the relationship between them.Zai Lab's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Zai Lab insiders, such as employees or executives, is commonly permitted as long as it does not rely on Zai Lab's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Zai Lab insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Zai Lab's Outstanding Corporate Bonds
Zai Lab issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Zai Lab uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Zai bonds can be classified according to their maturity, which is the date when Zai Lab has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View | |
| Morgan Stanley 3591 Corp BondUS61744YAK47 | View |
Understand Zai Lab's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Zai Lab's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0395 | |||
| Market Risk Adjusted Performance | (1.55) | |||
| Mean Deviation | 2.58 | |||
| Semi Deviation | 3.67 | |||
| Downside Deviation | 3.82 | |||
| Coefficient Of Variation | 2653.68 | |||
| Standard Deviation | 3.64 | |||
| Variance | 13.27 | |||
| Information Ratio | 0.0277 | |||
| Jensen Alpha | 0.1294 | |||
| Total Risk Alpha | 0.013 | |||
| Sortino Ratio | 0.0264 | |||
| Treynor Ratio | (1.56) | |||
| Maximum Drawdown | 25.6 | |||
| Value At Risk | (6.13) | |||
| Potential Upside | 4.29 | |||
| Downside Variance | 14.62 | |||
| Semi Variance | 13.5 | |||
| Expected Short fall | (2.50) | |||
| Skewness | 0.2988 | |||
| Kurtosis | 3.85 |
| Risk Adjusted Performance | 0.0395 | |||
| Market Risk Adjusted Performance | (1.55) | |||
| Mean Deviation | 2.58 | |||
| Semi Deviation | 3.67 | |||
| Downside Deviation | 3.82 | |||
| Coefficient Of Variation | 2653.68 | |||
| Standard Deviation | 3.64 | |||
| Variance | 13.27 | |||
| Information Ratio | 0.0277 | |||
| Jensen Alpha | 0.1294 | |||
| Total Risk Alpha | 0.013 | |||
| Sortino Ratio | 0.0264 | |||
| Treynor Ratio | (1.56) | |||
| Maximum Drawdown | 25.6 | |||
| Value At Risk | (6.13) | |||
| Potential Upside | 4.29 | |||
| Downside Variance | 14.62 | |||
| Semi Variance | 13.5 | |||
| Expected Short fall | (2.50) | |||
| Skewness | 0.2988 | |||
| Kurtosis | 3.85 |
Consider Zai Lab's intraday indicators
Zai Lab intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Zai Lab stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 43752.42 | |||
| Daily Balance Of Power | 0.525 | |||
| Rate Of Daily Change | 1.02 | |||
| Day Median Price | 26.36 | |||
| Day Typical Price | 26.45 | |||
| Price Action Indicator | 0.58 | |||
| Period Momentum Indicator | 0.63 |
Zai Lab Corporate Filings
8K | 3rd of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 2nd of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 15th of November 2024 Other Reports | ViewVerify | |
13A | 14th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
Zai Stock media impact
Far too much social signal, news, headlines, and media speculation about Zai Lab that are available to investors today. That information is available publicly through Zai media outlets and privately through word of mouth or via Zai internal channels. However, regardless of the origin, that massive amount of Zai data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Zai Lab news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Zai Lab relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Zai Lab's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Zai Lab alpha.
Zai Lab Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Zai Lab can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Zai Lab Corporate Management
| Peter Huang | Chief Officer | Profile | |
| Dr MBA | Chief Officer | Profile | |
| Joshua Smiley | Chief Officer | Profile | |
| Frazor III | Chief Sec | Profile | |
| Christine Chiou | Senior Relations | Profile | |
| Harald MD | Autoimmune Neuroscience | Profile |
Already Invested in Zai Lab?
The danger of trading Zai Lab is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Zai Lab is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Zai Lab. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Zai Lab is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Zai Lab offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Zai Lab's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Zai Lab Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Zai Lab Stock: Check out Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Zai Lab. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation. For information on how to trade Zai Stock refer to our How to Trade Zai Stock guide.You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Zai Lab. If investors know Zai will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Zai Lab listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.80) | Revenue Per Share | Quarterly Revenue Growth 0.477 | Return On Assets | Return On Equity |
The market value of Zai Lab is measured differently than its book value, which is the value of Zai that is recorded on the company's balance sheet. Investors also form their own opinion of Zai Lab's value that differs from its market value or its book value, called intrinsic value, which is Zai Lab's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Zai Lab's market value can be influenced by many factors that don't directly affect Zai Lab's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Zai Lab's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Zai Lab is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Zai Lab's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.