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ZTO sees EPS estimates rise, with consensus up 2.23% for the current year over the past 60 days.
ZTO boosts shareholder returns via $2B buyback completion and new $1.5B repurchase plan through 2028.
ZTO Express (ZTO - Free Report) is bolstered by a robust demand scenario, boosting the company’s top-line. The shareholder-friendly initiatives are encouraging. With these tailwinds, ZTO’s shares have performed impressively on the bourse. If you have not yet taken advantage of its share price appreciation, 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 2.23% over the past 60-day period for the current year. For 2027, the consensus mark for EPS has moved 1.03% north over the same time frame. The 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 rallied 22.4% over the past year, surpassing the Zacks Transportation - Services industry’s 6% growth.
Growth Factors: Robust parcel volume and improved pricing have driven a 12.4% year-over-year increase in the company’s core express delivery revenues in the fourth quarter of 2025, reflecting strong underlying demand. This momentum was further supported by an impressive 71.5% surge in key account revenues, fueled by higher e-commerce return shipments and effective direct sales efforts. Freight forwarding services contributed positively, with an 8.1% rise, while accessory sales recorded modest growth. Overall, the performance underscores the company’s diversified revenue streams and its ability to capitalize on favorable market trends.
ZTO’s capital allocation strategy underscores a strong commitment to enhancing shareholder returns, as evidenced by the near completion of its $2 billion share repurchase program. The company has launched a new $1.5 billion buyback initiative extending through 2028. The company’s consistent and sizable repurchases reflect confidence in its financial strength and long-term growth prospects. Complementing this, ZTO’s semi-annual dividend policy — with a payout ratio of at least 40% — and its plan to raise total shareholder returns to a minimum of 50% of adjusted net income from 2026 highlight a disciplined and increasingly shareholder-friendly approach, balancing reinvestment with meaningful capital distribution.
Southwest Airlines has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, delivering an average beat of 253.92%.
AL currently carries a Zacks Rank #2.
AL has an expected earnings growth rate of 14.1% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in three of the trailing four quarters, missed once in the remaining, delivering an average beat of 14.58%.
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Here's Why Investors Should Bet on ZTO Express Stock Right Now
Key Takeaways
ZTO Express (ZTO - Free Report) is bolstered by a robust demand scenario, boosting the company’s top-line. The shareholder-friendly initiatives are encouraging. With these tailwinds, ZTO’s shares have performed impressively on the bourse. If you have not yet taken advantage of its share price appreciation, 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 2.23% over the past 60-day period for the current year. For 2027, the consensus mark for EPS has moved 1.03% north over the same time frame. The 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 rallied 22.4% over the past year, surpassing the Zacks Transportation - Services industry’s 6% growth.
Image Source: Zacks Investment Research
Solid Zacks Rank: ZTO currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks (Strong Buy) here.
Growth Factors: Robust parcel volume and improved pricing have driven a 12.4% year-over-year increase in the company’s core express delivery revenues in the fourth quarter of 2025, reflecting strong underlying demand. This momentum was further supported by an impressive 71.5% surge in key account revenues, fueled by higher e-commerce return shipments and effective direct sales efforts. Freight forwarding services contributed positively, with an 8.1% rise, while accessory sales recorded modest growth. Overall, the performance underscores the company’s diversified revenue streams and its ability to capitalize on favorable market trends.
ZTO’s capital allocation strategy underscores a strong commitment to enhancing shareholder returns, as evidenced by the near completion of its $2 billion share repurchase program. The company has launched a new $1.5 billion buyback initiative extending through 2028. The company’s consistent and sizable repurchases reflect confidence in its financial strength and long-term growth prospects. Complementing this, ZTO’s semi-annual dividend policy — with a payout ratio of at least 40% — and its plan to raise total shareholder returns to a minimum of 50% of adjusted net income from 2026 highlight a disciplined and increasingly shareholder-friendly approach, balancing reinvestment with meaningful capital distribution.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may consider Southwest Airlines (LUV - Free Report) and Air Lease (AL - Free Report) .
LUV currently sports a Zacks Rank #1.
Southwest Airlines has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark once, delivering an average beat of 253.92%.
AL currently carries a Zacks Rank #2.
AL has an expected earnings growth rate of 14.1% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in three of the trailing four quarters, missed once in the remaining, delivering an average beat of 14.58%.