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Zedcor's Impressive Growth May Be Overshadowed by High Valuation
ByAinvest
Thursday, May 1, 2025 2:51 am ET1min read
Zedcor, a company that provides monitoring and surveillance services, has shown impressive growth. However, the valuation may be too high due to concerns about the company's profitability and potential competition from other surveillance technology providers. The company's stock price has risen significantly in recent months, raising questions about its sustainability.
Zedcor Inc. (CVE:ZDC), a technology-based security and surveillance services provider in Canada, has seen its stock price rise significantly in recent months. However, concerns about the company's profitability and potential competition from other surveillance technology providers have led to a reevaluation of its valuation. Analysts at Raymond James have lowered their Q2 2025 earnings estimates for Zedcor, casting a shadow over the company's recent performance.The Raymond James analyst, F. Bastien, now forecasts that Zedcor will post earnings per share (EPS) of $0.00 for the quarter, down from their prior estimate of $0.02 [1]. The consensus estimate for Zedcor's current full-year earnings is $0.03 per share. The company's FY2025 earnings are estimated at $0.02 EPS, Q4 2026 earnings at $0.02 EPS, and FY2027 earnings at $0.13 EPS.
Zedcor's stock price opened at C$3.09 on Wednesday, with a market cap of C$299.56 million, a P/E ratio of 767.85, and a beta of 2.48. The company's debt-to-equity ratio is 78.93, the quick ratio is 0.87, and the current ratio is 1.14. The stock has a 1-year low of C$0.99 and a 1-year high of C$3.85. The 50-day simple moving average is C$3.02, and the 200-day simple moving average is C$3.13.
Despite the recent growth, Zedcor's high valuation and potential competition from other surveillance technology providers have raised questions about the sustainability of its stock price. While the company has a Strong Buy rating among analysts, top-rated analysts believe that other stocks offer better value [2].
Investors should carefully consider these factors when evaluating Zedcor's stock. The company's ability to maintain its growth and profitability will be critical in determining its long-term success.
References:
[1] https://www.marketbeat.com/instant-alerts/raymond-james-comments-on-zedcors-q2-earnings-cvezdc-2025-04-23/
[2] https://www.marketbeat.com/investors/stocks-to-buy-now-before-the-broad-market-catches-on/
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