China stock Kanzhun, an online recruiting site, is Monday's pick for IBD 50 Growth Stocks To Watch. The e-commerce stock is climbing back from a brief sell-off and back near a buy point.
The Chinese human resources company provides online recruitment services through its mobile app, Boss Zhipin. It's the largest online recruitment platform in China, with 46.6 average monthly active users reported at the end of March.
The app allows instant direct chats between bosses and job seekers and uses proprietary artificial intelligence algorithms to give recommendation results to users.
China Stock Back Near Buy Point
Kanzhun stock is recovering from a pullback after the stock broke out of an irregular base with a 21.32 buy point on May 16. Shares reached a 52-week high on May 22, before dropping sharply on May 23. The stock fell below its 21-day exponential moving average, but retook the line in heavy volume on Friday, according to MarketSurge chart analysis.
The China stock tapped the buy point in early Monday trading, but retraced below the entry.
The e-commerce stock started trading on June 10, 2021, with an offer price of $19 per share. Kanzhun stock is trading around 21.20 and was down modestly in recent trades. Shares gained around 28% this year so far after climbing off 52-week lows in January.
Profits Double Over Prior Year
Kanzhun reported 108% first-quarter earnings growth on May 21. Its revenue increased 33.4% over last year's quarter, according to its earnings release.
"We are pleased to have achieved a strong start in the first quarter, with all financial metrics exceeding management's expectations," Chief Executive Jonathan Peng Zhao said in the earnings release. He also is founder and chairman of Kanzhun.
The company's board of directors also authorized a new share repurchase program effective from March 20, 2024, for a 12-month period. The plan allows for a repurchase up to $200 million of its shares.
The e-commerce stock holds a 98 out of 99 possible IBD Composite Rating and a 99 Earnings Per Share Rating.
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