Are You a Value Investor? This 1 Stock Could Be the Perfect Pick

In this article:

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, and Price/Cash Flow, the Value Style Score identifies the most attractive and most 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 sits at a Zacks Rank #3 (Hold), holds a Value Style Score of B, and has a VGM Score of B. Compared to the Transportation - Services industry's P/E of 14.9X, shares of ZTO Express (Cayman) Inc. are trading at a forward P/E of 9.8X. ZTO also has a PEG Ratio of 0.6, a Price/Cash Flow ratio of 7.6X, and a Price/Sales ratio of 2X.

Value investors don't just pay attention to a company's valuation ratios; positive earnings play a crucial role, too. One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2023. The Zacks Consensus Estimate has increased $0.01 to $1.54 per share. ZTO has an average earnings surprise of 17.3%.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ZTO Express (Cayman) Inc. (ZTO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement