What happened
Shares of Chinese human-resources service provider 51job, Inc. (JOBS +0.00%) rose on Thursday on no apparent news. The rally undoes some of the decline suffered by the stock on Sept. 10. 51job stock was up 9.8% when the market closed.
So what
There was nothing specific driving shares of 51job higher on Thursday. The decline on Monday was also not driven by any news.
Image source: Getty Images.
The stock has been tumbling since it peaked in June, a downtrend that was exacerbated by a mixed second-quarter report in early August. Even after Thursday's gains, the stock is still down about 38% from its peak. Thursday's rally may be nothing more than a beaten-down stock bouncing off fresh lows.
Now what
51job is growing quickly, posting 33% year-over-year revenue growth in the second quarter. The company is also profitable, and analysts expect adjusted earnings of $2.75 per share this year. That puts the price-to-earnings ratio at about 25 following Thursday's jump, far from nosebleed territory.
Still, the stock has soared over the past couple of years, up 136% since the start of 2016 even after the steep sell-off in the past few months. To reignite that rally, the company will need to at least match expectations when it reports its next batch of quarterly results in November.
