Despite lack of growth and high P/E ratio, investors hold onto their stock, risking future disappointment. If recent negative growth rates continue, shareholders' investments are at risk and potential investors may pay an excessive premium.
The dip in EPS points towards the company possibly prioritising growth over earnings. Recent share price surge could be a great opportunity to explore the stock more. However, there are investment risks to Zhejiang Zomax Transmission that includes at least one major warning sign.
Zhejiang Zomax Transmission, with its diminishing ROCE trend and stagnant capital usage, suggests limited growth. Despite the stagnancy, the stock rose by 165%. But, underlying risks and no exciting fundamentals call for prudence.
Zhejiang Zomax Transmission Stock Forum
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