Here's Why ZTO Express (Cayman) Inc. (ZTO) is a Strong Value Stock

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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

ZTO Express (Cayman) Inc. (ZTO)

Founded in 2009, ZTO Express is a leading player in the field of express delivery in China. This Shanghai-based company went public in 2016. Its American Depository Shares (ADSs) have been trading on the NYSE since Oct 27, 2016. The ticker symbol is ZTO.

ZTO boasts a Value Style Score of B and VGM Score of A, and holds a Zacks Rank #3 (Hold) rating. Shares of ZTO Express (Cayman) Inc. are trading at a forward earnings multiple of 16.1X, as well as a PEG Ratio of 0.9, a Price/Cash Flow ratio of 10.5X, and a Price/Sales ratio of 2.8X.

A company's earnings performance is important for value investors as well. For fiscal 2023, one analyst revised their earnings estimate higher in the last 60 days for ZTO, while the Zacks Consensus Estimate has increased $0.02 to $1.51 per share. ZTO also holds an average earnings surprise of 22%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding ZTO to their portfolios.

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