Advertisement
U.S. markets close in 1 hour 36 minutes
  • S&P 500

    5,253.31
    +4.82 (+0.09%)
     
  • Dow 30

    39,785.91
    +25.83 (+0.06%)
     
  • Nasdaq

    16,379.26
    -20.26 (-0.12%)
     
  • Russell 2000

    2,124.84
    +10.49 (+0.50%)
     
  • Crude Oil

    83.07
    +1.72 (+2.11%)
     
  • Gold

    2,242.20
    +29.50 (+1.33%)
     
  • Silver

    24.99
    +0.24 (+0.96%)
     
  • EUR/USD

    1.0794
    -0.0035 (-0.32%)
     
  • 10-Yr Bond

    4.2040
    +0.0080 (+0.19%)
     
  • GBP/USD

    1.2622
    -0.0016 (-0.12%)
     
  • USD/JPY

    151.3970
    +0.1510 (+0.10%)
     
  • Bitcoin USD

    70,900.71
    +2,361.81 (+3.45%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

What Is ZTO Express (Cayman) Inc.'s (NYSE:ZTO) Share Price Doing?

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Today we're going to take a look at the well-established ZTO Express (Cayman) Inc. (NYSE:ZTO). The company's stock saw significant share price movement during recent months on the NYSE, rising to highs of $21.15 and falling to the lows of $17.4. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether ZTO Express (Cayman)'s current trading price of $17.4 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at ZTO Express (Cayman)’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.

Check out our latest analysis for ZTO Express (Cayman)

What is ZTO Express (Cayman) worth?

The stock seems fairly valued at the moment according to my relative valuation model. I’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 20.56x is currently trading slightly above its industry peers’ ratio of 17.97x, which means if you buy ZTO Express (Cayman) today, you’d be paying a relatively fair price for it. And if you believe that ZTO Express (Cayman) should be trading at this level in the long run, there’s only an insignificant downside when the price falls to its real value. In addition to this, it seems like ZTO Express (Cayman)’s share price is quite stable, which could mean there may be less chances to buy low in the future now that it’s fairly valued. This is because the stock is less volatile than the wider market given its low beta.

What does the future of ZTO Express (Cayman) look like?

NYSE:ZTO Past and Future Earnings, June 6th 2019
NYSE:ZTO Past and Future Earnings, June 6th 2019

Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. ZTO Express (Cayman)’s earnings over the next few years are expected to increase by 34%, indicating a highly optimistic future ahead. This should lead to more robust cash flows, feeding into a higher share value.

What this means for you:

Are you a shareholder? ZTO’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the financial strength of the company. Have these factors changed since the last time you looked at ZTO? Will you have enough confidence to invest in the company should the price drop below its fair value?

Are you a potential investor? If you’ve been keeping an eye on ZTO, now may not be the most optimal time to buy, given it is trading around its fair value. However, the optimistic forecast is encouraging for ZTO, which means it’s worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.

Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on ZTO Express (Cayman). You can find everything you need to know about ZTO Express (Cayman) in the latest infographic research report. If you are no longer interested in ZTO Express (Cayman), you can use our free platform to see my list of over 50 other stocks with a high growth potential.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.

Advertisement