Why ZTO Express (Cayman) Inc. (ZTO) is a Top Value Stock for the Long-Term
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors alike.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
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 19.9X, as well as a PEG Ratio of 1.2, a Price/Cash Flow ratio of 10.4X, and a Price/Sales ratio of 3.4X.
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 $0.05 to $1.44 per share. ZTO has an average earnings surprise of 13.7%.
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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ZTO Express (Cayman) Inc. (ZTO) : Free Stock Analysis Report
