Is LZMH a good stock to invest in right now?
7/2/2025 01:07pm
**LZMH is not currently a good stock to invest in** based on the following analysis:
1. **Recent Performance and Volatility**:
- The stock has experienced a significant drop, with a closing price of $14.85 on July 1, 2025, representing a 10.6% decrease.
- The net fund flow as of July 1, 2025, is -$695,398.79, indicating significant selling pressure.
- The stock's moving averages are in a downward trend, with the 5-day moving average at $15.2, the 10-day at $16.48, and the 60-day at $14.19. This suggests that the stock is currently in a bearish phase.
- The MACD is at -1.3, which typically indicates bearish momentum.
- The RSI is at 42.33, which is close to the oversold threshold of 30, suggesting that the stock may be undervalued, but the negative momentum suggests caution.
- The KDJ indicator is at 19.74, which is quite low and could suggest that the stock is currently oversold. However, this should be interpreted with caution, as it does not necessarily indicate an immediate reversal.
- The Bollinger Bands are at $18.39, which is above the current trading price, indicating that the stock is currently in the lower part of its recent range.
|code|Ticker|Name|Date|Closing Price|market_code|
|---|---|---|---|---|---|
|LZMH|LZMH.O|LZ|20250701|14.85|186|
|code|Ticker|Name|Date|Net Fund Flow|market_code|
|---|---|---|---|---|---|
|LZMH|LZMH.O|LZ|20250227|-2141281.537|186|
|LZMH|LZMH.O|LZ|20250228|276026.8524|186|
|LZMH|LZMH.O|LZ|20250303|531835.2787|186|
|LZMH|LZMH.O|LZ|20250304|294094.917|186|
|LZMH|LZMH.O|LZ|20250305|-311793.099|186|
|LZMH|LZMH.O|LZ|20250306|47470.3374|186|
|LZMH|LZMH.O|LZ|20250307|-773939.1262|186|
|LZMH|LZMH.O|LZ|20250310|-1382865.8418|186|
|LZMH|LZMH.O|LZ|20250311|-125508.8883|186|
|LZMH|LZMH.O|LZ|20250312|305559.5711|186|
|code|Ticker|Name|Date|Moving Average|market_code|
|---|---|---|---|---|---|
|LZMH|LZMH.O|LZ|20250701|15.2020|186|
|code|Ticker|Name|Date|Boll|RSI|KDJ|MACD|market_code|
|---|---|---|---|---|---|---|---|---|
|LZMH|LZMH.O|LZ|20250701|18.3945|42.3268|19.7379|-1.3016|186|
2. **Technical Indicators and Support Levels**:
- The stock has a support level at $12 and a resistance level at $17.35. The proximity of the support level to the current price may indicate that there is limited downside risk, but the lack of positive momentum suggests that the stock may not have a strong immediate upside.
|code|Ticker|Name|Date|Support Level|Resistance Level|market_code|
|---|---|---|---|---|---|---|
|LZMH|LZMH.O|LZ|20250701|12.0000|17.3500|186|
3. **Valuation Metrics**:
- The P/E ratio is extremely high at 3326.81, which could suggest that the stock is overvalued based on its earnings. This is a significant red flag for investors looking to invest in the stock.
- The P/S ratio is 22.41, which is relatively high, indicating that the market is currently valuing the company's sales at a premium.
- The Price to Book Ratio is 247.72, which is very high and could suggest that the stock is overvalued based on its book value.
|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|LZMH|LZMH.O|LZ|20250131||0||186|
|LZMH|LZMH.O|LZ|20250203||0||186|
|LZMH|LZMH.O|LZ|20250204||0||186|
|LZMH|LZMH.O|LZ|20250205||0||186|
|LZMH|LZMH.O|LZ|20250206||0||186|
|LZMH|LZMH.O|LZ|20250207||0||186|
|LZMH|LZMH.O|LZ|20250210||0||186|
|LZMH|LZMH.O|LZ|20250220||0||186|
|LZMH|LZMH.O|LZ|20250221||0||186|
|LZMH|LZMH.O|LZ|20250224||0||186|
4. **Fundamental Analysis**: The company has a high debt-to-equity ratio of 0.48%, which could indicate that the company has a significant amount of debt relative to its equity. This can be a concern for investors, especially if the company's debt is not well-managed.
- The company has a negative return on equity of -1.7%, which suggests that the company is not generating positive returns on its equity capital.
5. **Market Sentiment and Recent News**: There has been a significant increase in trading volume, which could suggest that there is a lot of interest in the stock. However, the lack of positive price movement despite this volume increase could be a red flag.
- The stock has experienced a significant surge on June 25, 2025, which could be a sign of positive market sentiment. However, this needs to be evaluated in the context of the broader market and the company's fundamentals.
6. **Resumption of Trading**: The stock has recently had its trading temporarily halted due to volatility, which could suggest that the stock is not stable enough for some investors.
In conclusion, while there are some positive indicators such as the recent increase in trading volume and the potential for a rebound from the oversold territory, the overall negative momentum, high valuation metrics, and lack of positive fundamental data suggest that LZMH is not a good stock to invest in at this time. Investors should exercise caution and consider these factors before making an investment decision.