ZTO Express (ZTO - Free Report) is benefiting from strength across its core express delivery services unit. ZTO’s shareholder-friendly initiatives also look encouraging.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes ZTO Express an Attractive Pick?
Solid Rank & VGM Score: ZTO Express currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for ZTO Express 2023 earnings has moved up 2.02% year over year.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2023, ZTO Express’s earnings are expected to grow 6.06% year over year. For 2023 and 2024, ZTO Express’s earnings are expected to grow 22.76% and 23.51%, year over year, respectively.
Positive Earnings Surprise History: ZTO Express has an impressive earnings surprise history. The company has surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 21.95%.
Growth Factors: ZTO Express is benefiting from strong performance of the core express delivery services unit. Notably, revenues from the unit increased 14.1% year over year in second-quarter 2023. The uptick was driven by a 23.8% increase in parcel volume and a 7.8% decrease in parcel unit price. Parcel volume market share increased to 23.4% in the reported quarter. ZTO Express continues to expect 2023 parcel volume in the range of 29.27-30.24 billion.
We are also impressed with ZTO Express’s efforts to reward its shareholders. As of Jun 30, 2023, ZTO Express purchased 38,473,231 ADSs at an average purchase price of $25.18, including repurchase commissions. The company’s board of directors has further approved changes to its existing share repurchase program, increasing the value of shares to be repurchased from $1 billion to $1.5 billion and extending the effective time by one year through Jun 30, 2024.
Other Stocks to Consider
Investors interested in better-ranked stocks from the Zacks Transportation sector are United Airlines (UAL - Free Report) and SkyWest, Inc. (SKYW - Free Report) . United Airlines presently sports a Zacks Rank #1, while SkyWest carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
United Airlines has an expected earnings growth rate of more than 100% for the current year. UAL delivered a trailing four-quarter earnings surprise of 21.44%, on average.
The Zacks Consensus Estimate for UAL’s current-year earnings has improved 18.9% over the past 90 days. Shares of UAL have soared 34.5% year to date.
SkyWest's fleet-modernization efforts are commendable.Fall in operating expenses is a tailwind for SkyWest. In second-quarter 2023, the metric dipped 2.4% to $693.8 million due to a fall in operating costs. Low operating expenses boost bottom-line results. Shares of SKYW have surged 144.6% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 31.51%, on average.
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ZTO Express (ZTO - Free Report) is benefiting from strength across its core express delivery services unit. ZTO’s shareholder-friendly initiatives also look encouraging.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes ZTO Express an Attractive Pick?
Solid Rank & VGM Score: ZTO Express currently carries a Zacks Rank #2 (Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions:The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Over the past 90 days, the Zacks Consensus Estimate for ZTO Express 2023 earnings has moved up 2.02% year over year.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2023, ZTO Express’s earnings are expected to grow 6.06% year over year. For 2023 and 2024, ZTO Express’s earnings are expected to grow 22.76% and 23.51%, year over year, respectively.
Positive Earnings Surprise History: ZTO Express has an impressive earnings surprise history. The company has surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat is 21.95%.
Growth Factors: ZTO Express is benefiting from strong performance of the core express delivery services unit. Notably, revenues from the unit increased 14.1% year over year in second-quarter 2023. The uptick was driven by a 23.8% increase in parcel volume and a 7.8% decrease in parcel unit price. Parcel volume market share increased to 23.4% in the reported quarter. ZTO Express continues to expect 2023 parcel volume in the range of 29.27-30.24 billion.
We are also impressed with ZTO Express’s efforts to reward its shareholders. As of Jun 30, 2023, ZTO Express purchased 38,473,231 ADSs at an average purchase price of $25.18, including repurchase commissions. The company’s board of directors has further approved changes to its existing share repurchase program, increasing the value of shares to be repurchased from $1 billion to $1.5 billion and extending the effective time by one year through Jun 30, 2024.
Other Stocks to Consider
Investors interested in better-ranked stocks from the Zacks Transportation sector are United Airlines (UAL - Free Report) and SkyWest, Inc. (SKYW - Free Report) . United Airlines presently sports a Zacks Rank #1, while SkyWest carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
United Airlines has an expected earnings growth rate of more than 100% for the current year. UAL delivered a trailing four-quarter earnings surprise of 21.44%, on average.
The Zacks Consensus Estimate for UAL’s current-year earnings has improved 18.9% over the past 90 days. Shares of UAL have soared 34.5% year to date.
SkyWest's fleet-modernization efforts are commendable.Fall in operating expenses is a tailwind for SkyWest. In second-quarter 2023, the metric dipped 2.4% to $693.8 million due to a fall in operating costs. Low operating expenses boost bottom-line results. Shares of SKYW have surged 144.6% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 31.51%, on average.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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