ZTO Express (ZTO) performed well in the past year and has the potential to sustain the momentum in the future. If you have not taken advantage of its share price appreciation yet, it’s time to do so.
Against this backdrop, let’s look at the factors that make this stock an attractive pick.
What Makes ZTO Express an Attractive Pick?
An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run on the bourse over the past year. Shares of ZTO Express have gained 16% over the past six months, outperforming the transportation-services industry’s 1.3% loss.
ZTO Stock’s Six-Month Price Comparison
Solid Rank & VGM Score: ZTO Express has 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. The Zacks Consensus Estimate for 2026 earnings has moved 6.1% north in the past 90 days. For 2027, the consensus mark for earnings has been revised to 9.2% upward in the same time frame. The favorable estimate revisions indicate brokers’ confidence in the stock.
Earnings Expectations: Earnings growth and stock price gains often indicate a company’s prospects. For 2026 and 2027, ZTO Express’ earnings are expected to improve 15.15% and 12.11% year over year, respectively.
Growth Factors: ZTO Express’ top line continues to benefit from the strong performance of the core express delivery services unit. Notably, revenues from the core express delivery business increased 22.5% year over year in first-quarter 2026, owing to 13.2% growth in parcel volume and an 8.2% increase in parcel unit price. Key account revenue, generated by direct sales organizations, grew 92.2% year over year, owing to an increase in e-commerce return parcels. Based on current market and operating conditions, ZTO Express expects its 2026 parcel volume guidance in the range of 42.37 billion to 43.52 billion (reflecting 10-13% year over year growth).
ZTO Express’ efforts to reward its shareholders even in the present uncertain scenario are noteworthy. ZTO’s board has approved a new share repurchase program in March 2026, authorizing the repurchase of up to $1.5 billion of its shares over the next 24 months, effective from March 20, 2026, through March 20, 2028. ZTO Express anticipates funding these repurchases utilizing its existing cash balance. Such shareholder-friendly efforts boost investor confidence and positively impact the company’s bottom line.
Other Stocks to Consider
Investors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. EXPD and International Seaways INSW.
EXPD currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Expeditors has an expected earnings growth rate of 11.9% 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 13.96%.
INSW currently sports a Zacks Rank #1.
INSW has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 33.93%.
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Expeditors International of Washington, Inc. (EXPD): Free Stock Analysis Report
ZTO Express (Cayman) Inc. (ZTO): Free Stock Analysis Report
International Seaways Inc. (INSW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).