ZTO Express Stock Plunges 19.5% in 6 Months: Should You Buy the Dip?

Zacks11-30

Shares of ZTO Express ZTO have not had a good time on the bourses of late, declining in double-digits over the past six months. The disappointing price performance resulted in ZTO underperforming its ...

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The disappointing price performance resulted in ZTO underperforming its ...</p>\n\n<a href=\"https://finance.yahoo.com/news/zto-express-stock-plunges-19-162800257.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>ZTO Express Stock Plunges 19.5% in 6 Months: Should You Buy the Dip?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nZTO Express Stock Plunges 19.5% in 6 Months: Should You Buy the Dip?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-30 00:28 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/zto-express-stock-plunges-19-162800257.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of ZTO Express ZTO have not had a good time on the bourses of late, declining in double-digits over the past six months. The disappointing price performance resulted in ZTO underperforming its ...</p>\n\n<a href=\"https://finance.yahoo.com/news/zto-express-stock-plunges-19-162800257.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4535","symbol_name":"淡马锡持仓","start_time":0,"source_url":"https://finance.yahoo.com/news/zto-express-stock-plunges-19-162800257.html","article_id":"2487598798","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/DEstXzsIplh.2H7jJnmBDA--~B/aD00Mjc7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/7ada1598fc364283c3430928cdd86edc"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2487598798","pubTimestamp":1732897680,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Shares of ZTO Express ZTO have not had a good time on the bourses of late, declining in double-digits over the past six months. The disappointing price performance resulted in ZTO underperforming itsindustry in the said time frame. Additionally, ZTO’s price performance was unfavorable to that of other industry players like C.H. Robinson Worldwide  and Expeditors International of Washington, Inc.  over the past six-month period.ZTO Express updates its 2024 parcel volume guidance in the range of 33.7 billion-33.9 billion. The updated guidance represents an increase of 11.6-12.3% year over year.Previously, ZTO expected 2024 parcel volumes in the range of 34.73-35.64 billion. The guidance represents an increase of 15%-18% year over year.Revenues from freight forwarding services grew 0.8% year over year in third-quarter 2024.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4535":"淡马锡持仓","CHRW":"罗宾逊物流","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","BK4526":"热门中概股","BK4588":"碎股","BK4131":"航空货运与物流","LU1489326972.SGD":"First Eagle Amundi International AHS-MD SGD-H","BK4503":"景林资产持仓","IE00B5MMRT66.SGD":"NEUBERGER BERMAN CHINA EQUITY \"A\" (SGDHDG) ACC","BK4502":"阿里概念","IE00B543WZ88.USD":"NEUBERGER BERMAN CHINA EQUITY \"A\" (USD) ACC","BK4505":"高瓴资本持仓","LU0417516902.SGD":"Allianz China Equity Cl AT Acc SGD","LU0985489474.SGD":"First Eagle Amundi International AHS-C SGD-H","EXPD":"康捷国际物流","IE00BPRC5H50.USD":"NEUBERGER BERMAN CHINA EQUITY \"A\" (USD) INC","LU0878866978.SGD":"First Eagle Amundi International AHS-QD SGD-H","LU1303367103.USD":"摩根大通多经理另类基金 A (acc)","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU0433182093.SGD":"First Eagle Amundi International AS-C SGD","LU2098885051.SGD":"JPMorgan Funds - Multi-Manager Alternatives A (acc) SGD","BK4597":"股息贵族","LU0068578508.USD":"First Eagle Amundi International Cl AU-C USD","BK4567":"ESG概念","BK4585":"ETF&股票定投概念","BK4533":"AQR资本管理(全球第二大对冲基金)","ZTO":"中通快递","BK4558":"双十一"},"translate_title":"中通快递股价6个月暴跌19.5%：该不该逢低买入？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ZTO":1,"CHRW":1,"EXPD":1},"content_text":"Shares of ZTO Express ZTO have not had a good time on the bourses of late, declining in double-digits over the past six months. The disappointing price performance resulted in ZTO underperforming its industry in the said time frame. Additionally, ZTO’s price performance was unfavorable to that of other industry players like C.H. Robinson Worldwide (CHRW) and Expeditors International of Washington, Inc. (EXPD) over the past six-month period.\nSix-Month Price Comparison\n Image Source: Zacks Investment Research\nGiven the significant pullback in ZTO’s shares currently, investors might be tempted to snap up the stock. But is this the right time to buy ZTO? Let’s find out.\nZTO’s Bearish Parcel Volume Guidance for 2024\nZTO Express updates its 2024 parcel volume guidance in the range of 33.7 billion-33.9 billion. The updated guidance represents an increase of 11.6-12.3% year over year.\nPreviously, ZTO expected 2024 parcel volumes in the range of 34.73-35.64 billion. The guidance represents an increase of 15%-18% year over year.\nRising Expenses Weigh on ZTO Stock\nThe domestic express delivery market is highly competitive due to the presence of big players like SF Express and STO Express. If competition intensifies, the company’s stock price may decrease.\nHigher selling, general and administrative (SG&A) expenses are pushing operating expenses and hurting the bottom line. In 2023, SG&A expenses increased 25.6% year over year. During the third quarter of 2024, SG&A expenses increased 17.5% year over year.\nGiven the headwinds surrounding the stock, earnings estimates have been southbound, as shown below.\n\nImage Source: Zacks Investment Research\nFactors Working in Favor of ZTO Stock\nZTO’s top line is benefiting from strength across all its segments.Revenues from the core express delivery business improved 18.1% year over year in third-quarter 2024, owing to 15.9% growth in parcel volume and a 1.8% increase in unit price. KA revenues, including delivery fees from direct sales organizations established to serve core express KA customers, increased 122.1% as the proportion of higher-valued parcels, such as returned parcels from e-commerce platforms, continued to increase.\nRevenues from freight forwarding services grew 0.8% year over year in third-quarter 2024.\nRevenues from sales of accessories, largely consisting of sales of thermal paper used for digital waybills' printing, rose 27.6% year over year. Other revenues were mainly derived from financing services.\nAdditionally, ZTO’s gross profit improved 23.2% from the year-ago reported quarter on the back of revenue growth and cost productivity gain. Gross margin rate improved to 31.2% from 29.8% in the year-ago period.\nImpressive Valuation Picture for ZTO Stock\nFrom a valuation perspective, ZTO is trading at a discount compared to the industry, going by its forward 12-month price-to-sales ratio. The reading is also below its median over the last five years. The company has a Value Score of A.\n Image Source: Zacks Investment Research\nTo Conclude\nIt is understood that ZTO stock is attractively valued, and an increase in parcel volume is contributing to ZTO’s top line. However, given the headwinds mentioned in the write-up, we do not advise buying this Zacks Rank #3 (Hold) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. \nInstead, investors should monitor the company’s developments closely for a more appropriate entry point. For those who already own the stock, it will be prudent to stay invested. The stock’s Zacks Rank supports our thesis.\nWant 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\nC.H. Robinson Worldwide, Inc. (CHRW) : Free Stock Analysis Report\nExpeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report\nZTO Express (Cayman) Inc. (ZTO) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2487598798"}