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Here's Why Investors Should Bet on ZTO Express Stock Right Now

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Key Takeaways

  • ZTO benefits from upward EPS estimate revisions, with current-year forecasts raised over the past 60 days.
  • ZTO shares jumped 12.1% in 90 days, easily outperforming the transportation services industry's gains.
  • ZTO saw Q3 parcel volume rise 9.8% Y/Y, with express delivery revenues up 11.6%, lifting overall growth.

ZTO Express Cayman (ZTO - Free Report) is bolstered by its robust operational efficiency. The company’s strong liquidity is also encouraging. Due to these tailwinds, ZTO shares have performed impressively. If you have not taken advantage of its share price appreciation yet, it’s time to do so.

Let’s delve deeper.

Factors Favoring ZTO Stock

Northward Earnings Estimate Revision: The Zacks Consensus Estimate for earnings per share (EPS) has been revised upward by 6.5% over the past 60 days for the current year. For 2026, the consensus mark for EPS has moved 6.6% north in the same time frame. These favorable estimate revisions indicate brokers’ confidence in the stock.

Robust Price Performance: A look at the company’s price trend reveals that its shares have surged 12.1% over the past 90 days, surpassing the Zacks Transportation - Services industry’s 2.9% growth.

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Image Source: Zacks Investment Research

Solid Zacks Rank: ZTO currently sports a Zacks Rank #1 (Strong Buy).

Growth Factors: Parcel volume growth is a big tailwind for ZTO Express. As evidence, in the third quarter of 2024, the parcel volume rose 9.8% year over year. Strong performance of the core express delivery services unit is also encouraging. Notably, revenues from the unit increased 11.6% year over year, thereby boosting ZTO’s top line. The company expects its 2025 parcel volume to be in the range of 38.2 billion to 38.7 billion, reflecting year-over-year growth of 12.3-13.8%.

Moreover, ZTO demonstrated a consistently increasing trend in its current ratio, rising from 0.96 in the third quarter of 2024 to 1.38 in the third quarter of 2025. A current ratio greater than one is always considered desirable, as it indicates that the company has sufficient funds to meet its short-term obligations.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider Expeditors International of Washington (EXPD - Free Report) and FedEx (FDX - Free Report) .

EXPD currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 3.50% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 13.94%.

FDX currently carries a Zacks Rank #2 (Buy).

The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in three of the trailing four quarters and missed once in the remaining, delivering an average beat of 2.03%.


See More Zacks Research for These Tickers


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Expeditors International of Washington, Inc. (EXPD) - free report >>

FedEx Corporation (FDX) - free report >>

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

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