Why Should You Put ZTO Express (Cayman) Inc. (NYSE: ZTO) On Your Portfolio?


    Invesco Advisers, Inc. recently announced the acquisition of new stake in ZTO Express (Cayman) Inc. (NYSE:ZTO). The institutional investor has increased its shareholding in the Industrials company by 0.38% to 38.61 million shares with purchase of 0.15 million shares. This fresh investment now brings its stake to 6.68% valued currently at $1.43 billion. In addition, BlackRock Fund Advisors raised its holdings by 2.2 million to 12.11 million shares. And Shanghai Greenwoods Asset Managem.. has lifted its position by 1,132.61% or 9.48 million shares – to 10.31 million shares.

    With over 6.83 million ZTO Express (Cayman) Inc. (ZTO) shares trading Monday and a closing price of $33.53 on the day, the dollar volume was approximately $229.03 million. The shares have shown a positive weekly performance of 4.65% and its price on 08/31/20 gained nearly 2.48%. Currently, there are 783.90M common shares owned by the public and among those 552.55M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 19 analysts who have offered their price forecasts for ZTO have a consensus price objective of $270.25. The analysts have set the share’s price value over the next 12 months at a high of $298.67 and a low of $194.44 should the stock experience a downside. Incidentally, analysts’ outlook for the ZTO Express (Cayman) Inc. stock is 1.90 for the next 12 months. The average price target is 9.45% above its last price level and an upside to the estimated low will see the stock gain 82.76% over that period. But an upside of 88.77% will see the stock hit the forecast high price target while mean target price for the stock is $276.05.

    The top 3 mutual fund holders in ZTO Express (Cayman) Inc. are Invesco Oppenheimer Developing Ma, Platinum International Fund (Top, and Vanguard Total International Stoc. Invesco Oppenheimer Developing Ma owns 33.76 million shares of the company’s stock, all valued at over $1.25 billion. Platinum International Fund (Top sold -0.1 million shares to see its total holdings shrink to 6.74 million shares valued at over $249.83 million and representing 1.17% of the shares outstanding. Vanguard Total International Stoc sold -0.2 million shares to bring its total holdings to over 6.48 million shares at a value of $239.92 million. Vanguard Total International Stoc now owns shares totaling to 1.12% of the shares outstanding.

    Shares of ZTO Express (Cayman) Inc. (NYSE: ZTO) opened at $32.80, up $0.08 from a prior closing price of $32.72. However, the script later closed the day at $33.53, up 2.48%. The company’s stock has a 5-day price change of 4.65% and -0.03% over the past three months. ZTO shares are trading 45.17% year to date (YTD), with the 12-month market performance up to 65.27% higher. It has a 12-month low price of $19.63 and touched a high of $38.99 over the same period. Currently, 6.83 million shares have been traded, compared to an average intraday trading volume of 2.86 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -2.64%, -6.30%, and 17.73% respectively.

    Institutional ownership of ZTO Express (Cayman) Inc. (NYSE: ZTO) shares accounts for 40.00% of the company’s 783.90M shares outstanding. Mutual fund holders own 16.82%, while other institutional holders and individual stakeholders account for 20.14% and — respectively.

    It has a market capitalization of $25.91B and a beta (3y monthly) value of 0.25. The stock’s trailing 12-month PE ratio is 33.17, while the earnings-per-share (ttm) stands at $1.01. The company has a PEG of 12.07 and a Quick Ratio of 2.00 with the debt-to-equity ratio at 0.06. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.38% over the week and 3.11% over the month.

    Analysts forecast that ZTO Express (Cayman) Inc. (ZTO) will achieve an EPS of $0.22 for the current quarter, $0.33 for the next quarter and $1.2 for 2021. The lowest estimate earnings-per-share for the quarter is $0.22 while analysts give the company a high EPS estimate of $0.23. Comparatively, EPS for the current quarter was $0.24 a year ago. Earnings per share for the fiscal year are expected to increase by 24.20%, and 28.30% over the next financial year. EPS should shrink at an annualized rate of 2.75% over the next five years, compared to 67.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 19 brokerage firm advisors rate ZTO Express (Cayman) Inc. (ZTO) as a “Strong Buy” at a consensus score of 1.90. Specifically, 14 Wall Street analysts polled rate the stock as a buy, while 2 of the 19 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the ZTO, a number of firms have released research notes about the stock. HSBC Securities stated their Hold rating for the stock in a research note on May 22, 2020, with the firm’s price target at. JP Morgan coverage for the ZTO Express (Cayman) Inc. (ZTO) stock in a research note released on May 22, 2020 offered a Neutral rating with a price target of $32. BofA/Merrill was of a view on May 21, 2020 that the stock is Neutral, while UBS gave the stock Buy rating on April 23, 2019, issuing a price target of. CLSA on their part issued Underperform rating on May 10, 2018.


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