Here's Why Investors Should Avoid ZTO Express Stock Now

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Here's Why Investors Should Avoid ZTO Express Stock Now

Zacks11-07

ZTO Express Cayman Inc. ZTO is facing significant challenges. Escalating operating expenses and weak financial stability are adversely affecting the company’s bottom line, making it an unattractive ...

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Escalating operating expenses and weak financial stability are adversely affecting the company’s bottom line, making it an unattractive ...</p>\n\n<a href=\"https://finance.yahoo.com/news/heres-why-investors-avoid-zto-153000533.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>Here's Why Investors Should Avoid ZTO Express Stock Now</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\">\nHere's Why Investors Should Avoid ZTO Express Stock Now\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-07 23:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/heres-why-investors-avoid-zto-153000533.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>ZTO Express Cayman Inc. ZTO is facing significant challenges. Escalating operating expenses and weak financial stability are adversely affecting the company’s bottom line, making it an unattractive ...</p>\n\n<a href=\"https://finance.yahoo.com/news/heres-why-investors-avoid-zto-153000533.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":"BK4131","symbol_name":"航空货运与物流","start_time":0,"source_url":"https://finance.yahoo.com/news/heres-why-investors-avoid-zto-153000533.html","article_id":"2481116665","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/Uxe0JhDXyaE1m0G8BA2Nkw--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/4d0891fbc3246540ade9bc22c61345c6"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481116665","pubTimestamp":1730993400,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"ZTO Express Cayman Inc. ZTO is facing significant challenges. Escalating operating expenses and weak financial stability are adversely affecting the company’s bottom line, making it an unattractive choice for investors’ portfolios.Southward Earnings Estimate Revision:The Zacks Consensus Estimate for current-year earnings has moved 1.7% south in the past 60 days. For the next year, the consensus mark for earnings has been revised 0.5% downward in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.Unimpressive Price Performance: ZTO Express Cayman shares have declined 5.7% in the past year against the industry’s 5.9% rise.Moreover, high competition in the domestic express delivery market, led by major players like SF Express and STO Express, could drive down the company’s stock price if it intensifies.The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing f","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4131":"航空货运与物流","BK4503":"景林资产持仓","LU0348825331.USD":"ALLIANZ CHINA EQUITY \"A\" (USD) INC","BK4502":"阿里概念","SKYW":"西空航空","LU0648000940.SGD":"Natixis Harris Associates Global Equity RA SGD","IE00B5MMRT66.SGD":"NEUBERGER BERMAN CHINA EQUITY \"A\" (SGDHDG) ACC","BK4505":"高瓴资本持仓","RYAAY":"Ryanair Holdings plc","IE00B543WZ88.USD":"NEUBERGER BERMAN CHINA EQUITY \"A\" (USD) ACC","BK4548":"巴美列捷福持仓","LU0417516902.SGD":"Allianz China Equity Cl AT Acc SGD","LU0130103400.USD":"Natixis Harris Associates Global Equity RA USD","LU1201861165.SGD":"Natixis Harris Associates Global Equity PA SGD","ISBC":"投资者银行","BK4526":"热门中概股","BK4532":"文艺复兴科技持仓","BK4008":"航空公司","BK4585":"ETF&股票定投概念","BK4558":"双十一","BK4211":"区域性银行","BK4566":"资本集团","BK4535":"淡马锡持仓","ZTO":"中通快递","BK4588":"碎股","BK4500":"航空公司"},"translate_title":"这就是为什么投资者现在应该避开中通快递股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ZTO":1,"SKYW":1,"RYAAY":1,"ISBC":1},"content_text":"ZTO Express Cayman Inc. ZTO is facing significant challenges. Escalating operating expenses and weak financial stability are adversely affecting the company’s bottom line, making it an unattractive choice for investors’ portfolios.\nLet’s delve deeper.\nZTO: Key Risks to Watch\nSouthward Earnings Estimate Revision:The Zacks Consensus Estimate for current-year earnings has moved 1.7% south in the past 60 days. For the next year, the consensus mark for earnings has been revised 0.5% downward in the same time frame. The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.\nUnimpressive Price Performance: ZTO Express Cayman shares have declined 5.7% in the past year against the industry’s 5.9% rise.\nImage Source: Zacks Investment Research\nWeak Zacks Rank: ZTO currently carries a Zacks Rank #4 (Sell).\nBearish Industry Rank: The industry to which ZTO belongs currently has a Zacks Industry Rank of 191 (out of 251). Such an unfavorable rank places it in the bottom 24% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.\nA mediocre stock within a strong group is likely to outclass a robust stock in a weak industry. Reckoning the industry’s performance becomes imperative.\nHeadwinds: ZTO Express is facing increasing pressure on its bottom line due to rising operating expenses, challenging its financial stability. In the second quarter of 2024, total operating expenses increased by 5% year over year, driven by higher labor costs.\nIn the second quarter of 2024, labor costs, including compensation and benefits, surged 17.5% year over year, totaling $683.7 million. General supplies and expenses rose 15% to $81.6 million, and interest expenses climbed to $15.94 million in the same time period.\nThis upward trend in expenses reflects broader cost pressures, especially in labor, which could continue to impact ZTO's bottom line if not managed effectively. The company will need to find ways to control costs or enhance revenue growth to maintain financial stability.\nMoreover, high competition in the domestic express delivery market, led by major players like SF Express and STO Express, could drive down the company’s stock price if it intensifies.\nStocks to Consider\nSome better-ranked stocks for investors’ consideration in the Zacks Transportation sector include Ryanair RYAAY and SkyWest SKYW.\nRyanair currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  RYAAY has an expected earnings growth rate of 9.2% for the current year.\nThe company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average miss of 31.05%. Shares of RYAAY have risen 12.3% in the past year.SKYW sports a Zacks Rank #1 at present andhas an expected earnings growth rate of 2.6% for the current year.\nThe company has an encouraging track record with respect to the earnings surprise, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 79.1%. Shares of SKYW have climbed 156.5% in the past year.\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\nRyanair Holdings PLC (RYAAY) : Free Stock Analysis Report\nSkyWest, Inc. (SKYW) : 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":null,"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":[],"hasMoreComments":false,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}