German stock alert


Afternoon Alert: Zalando down 3.5% in 2 days 18 October 2017 13:14 CEST


Zalando SE (ETR:ZAL) extended its slide on Wednesday, shedding an additional EUR1.19 (or 2.7%) to trade at EUR43.03. Trading volume was 11% of average so far today. The shares have fallen EUR1.56 (or 3.5%) over the past two trading days vs. the DAX Index which has risen 0.4% in the same period.

Current indications of bearish signals that support the trend in the unusual trading:

+ The price dropped 3.4% in the last week.

Other Bearish Signals include:

+ Tobin's Q Ratio is 4.2. Compared with the rest of the market the stock is overvalued and ranks in the bottom quartile of stocks by value of Q Ratio.

+ Net profit margin has averaged 3.2% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

+ As per the Du Pont analysis, Return on Equity of 8.6% is lower than sector average of 9.0%.


The stock has underperformed 54% of the Xetra market over the past 6 months.

Bullish Signals:

The positive 0.86 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

The 5.4% discount to 12-month high of EUR45.48 against the 28.3% premium to 12-month low of EUR33.55 suggests the stock continues to push for new highs.


ISIN: DE000ZAL1111

PermID: 1-5043464296