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5 Reasons Why You Should Buy ZTO Express (ZTO) Stock Now
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ZTO Express' (ZTO - Free Report) top line continues to benefit from the upbeat performance of its core express delivery services segment.
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 B. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
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’ third-quarter 2022 earnings has moved up 3.7% year over year to $2.76. For full-year 2022, the company’s earnings have increased 4.4% year over year.
Positive Earnings Surprise History: ZTO Express has an impressive earnings surprise history. The company delivered an earnings surprise of 8.9% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2022, ZTO Express’ earnings are expected to register 27.3% growth. For 2022 and 2023, the company’s earnings are expected to grow 22.9% and 27.5%, year over year, respectively. The company has a long-term earnings growth rate of 18.69%.
Growth Factors: The upbeat performance of the core express delivery services segment is a positive. Notably, revenues from the unit increased 18.8% year over year in the second quarter of 2022, owing to a 7.5% increase in parcel volumes. ZTO Express anticipates parcel volumes in the range of 24.96-25.86 billion in 2022, indicating a rise of 12-16% year over year.
Efforts to reward its shareholders are also encouraging. These shareholder-friendly moves instill investors’ confidence and positively impact the company's bottom line. The company has enough cash to pay off its current debt obligations.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are GATX Corporation (GATX - Free Report) , Ryder System, Inc. (R - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) ,each currently carrying a Zacks Rank #2.
GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days.
Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. The company has a long-term expected growth rate of 10%.
Ryder has an expected earnings growth rate of 56.3% for the current year. R delivered a trailing four-quarter earnings surprise of 30.2%, on average.
The Zacks Consensus Estimate for Ryder’s current-year earnings has improved 4.2% over the past 90 days.
Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 142% over the past year.
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5 Reasons Why You Should Buy ZTO Express (ZTO) Stock Now
ZTO Express' (ZTO - Free Report) top line continues to benefit from the upbeat performance of its core express delivery services segment.
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 B. 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. You can see the complete list of today’s Zacks #1 Rank stocks here.
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’ third-quarter 2022 earnings has moved up 3.7% year over year to $2.76. For full-year 2022, the company’s earnings have increased 4.4% year over year.
Positive Earnings Surprise History: ZTO Express has an impressive earnings surprise history. The company delivered an earnings surprise of 8.9% in the last four quarters, on average.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For third-quarter 2022, ZTO Express’ earnings are expected to register 27.3% growth. For 2022 and 2023, the company’s earnings are expected to grow 22.9% and 27.5%, year over year, respectively. The company has a long-term earnings growth rate of 18.69%.
Growth Factors: The upbeat performance of the core express delivery services segment is a positive. Notably, revenues from the unit increased 18.8% year over year in the second quarter of 2022, owing to a 7.5% increase in parcel volumes. ZTO Express anticipates parcel volumes in the range of 24.96-25.86 billion in 2022, indicating a rise of 12-16% year over year.
Efforts to reward its shareholders are also encouraging. These shareholder-friendly moves instill investors’ confidence and positively impact the company's bottom line. The company has enough cash to pay off its current debt obligations.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Transportation sector are GATX Corporation (GATX - Free Report) , Ryder System, Inc. (R - Free Report) and Teekay Tankers Ltd. (TNK - Free Report) ,each currently carrying a Zacks Rank #2.
GATX Corporation has an expected earnings growth rate of 17.8% for the current year. GATX delivered a trailing four-quarter earnings surprise of 28.9%, on average.
The Zacks Consensus Estimate for GATX’s current-year earnings has improved 2.1% over the past 90 days.
Triton has an expected earnings growth rate of 22.4% for the current year. TRTN delivered a trailing four-quarter earnings surprise of 7.5%, on average. The company has a long-term expected growth rate of 10%.
Ryder has an expected earnings growth rate of 56.3% for the current year. R delivered a trailing four-quarter earnings surprise of 30.2%, on average.
The Zacks Consensus Estimate for Ryder’s current-year earnings has improved 4.2% over the past 90 days.
Teekay Tankers has an expected earnings growth rate of 140.1% for the current year. TNK delivered a trailing four-quarter earnings surprise of 46.1%, on average. Teekay Tankers has a long-term expected growth rate of 3%.
The Zacks Consensus Estimate for TNK’s current-year earnings has improved more than 100% over the past 90 days. Shares of TNK have soared 142% over the past year.