Back to top

Image: Bigstock

What Makes ZTO Express (Cayman) (ZTO) a Strong Sell?

Read MoreHide Full Article

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.

One such stock that you may want to consider dropping is ZTO Express (Cayman) Inc. (ZTO - Free Report) , which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in ZTO.

A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with no upward revisions. This trend has caused the consensus estimate to trend lower, going from 70 cents a share a month ago to its current level of 63 cents.

Also, for the current quarter, ZTO has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 9 cents a share from 10 cents over the past 30 days.    

The stock also has seen some pretty dismal trading lately, as the share price has dropped 10% in the past month.

ZTO EXPRESS INC Price and Consensus

So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.

If you are still interested in the Transportation - Services industry, you may instead consider a better-ranked stock - Hub Group, Inc. (HUBG - Free Report) . The stock currently holds a Zacks Rank #1 (Strong Buy) and may be a better selection at this time. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Hub Group, Inc. (HUBG) - free report >>

ZTO Express (Cayman) Inc. (ZTO) - free report >>

Published in