ZTO stock: buy or sell?

ZTO stock price: $24.72 -1.79% At close on February 21st, 2020

Updated on:
February 21st, 2020

5

ZTO Express (Cayman) dropped -1.79% to $24.72 after yesterday all time highs.

ZTO Express (Cayman) Inc., through its subsidiaries, provides express delivery and other value-added logistics services in China.

Should I buy ZTO stock?

Trading stocks requires experience and discipline, and your buying and selling decisions must come following a methodology. Following a trading plan helps to make decisions easier, quicker and with less hesitations. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

These 2 buy setups are elegible for ZTO Express (Cayman) stock now:

Buy setupElegible
New all-time highYes
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is ZTO Express (Cayman) stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. Unfortunately, we couldn't detect any rating for ZTO stock for the last 30 days.

ZTO stock analysis

Daily outlook

ZTO Express (Cayman) dropped -1.79% on Feb 21st to $24.72 after topping to all time highs on Thursday.

After several days of continuous rises in past weeks, ZTO Express (Cayman) dropped -1.79% to $24.72. On February 3rd ZTO price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On Thursday, ZTO hit new all time highs, pushing higher previous ATH of $24.86 recorded on Tuesday. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

ZTO stock chart (daily)

Weekly outlook

ZTO Express (Cayman) ended this week at $24.72 after marking a new all time high ($25.27) and soared a pretty good 2.91%. Early February ZTO rocketed an astounding 8.59% in just one week. Late January ZTO plummed a dreadful -6.94% in just one week. Counting this, it's been 3 climbing weeks in a row, soaring a 13.27%.

ZTO shows a strong mid-term uptrend with several rising tops and rising bottoms. Since its last bottom late January, ZTO climbed unceasignly breaking out to new all time highs. By mid April 2019, SMA20w and SMA40w crossed up triggering a rise of 26.64%. Late March 2019 ZTO price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

ZTO stock chart (weekly)

ZTO stock price history

ZTO IPO was on October 27th, 2016 at $17.92 per share1. Since then, ZTO stock surged a 37.90%, with a yearly average of 12.60%. If you had invested right after ZTO's IPO a $1,000 in ZTO stock in 2016, it would worth $379.00 today.

1: Adjusted price after possible price splits or reverse-splits.

ZTO stock historical price chart

ZTO stock reached all-time highs on Thursday with a price of $25.27.

ZTO stock price target

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last month we have not found any price prediction for ZTO Express (Cayman) stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, ZTO Express (Cayman) reported its latest financial data, posting a slightly good growth for the Earnings per Share (EPS) ratio. Analyst were expecting $0.23 per share, but ZTO Express (Cayman) posted $0.24.
ZTO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/an/an/a
2017-Q2-n/an/an/a
2017-Q3-n/an/an/a
2017-Q42018-03-050.280.27-3.6%
2018-Q12018-05-090.120.120.0%
2018-Q22018-08-080.220.220.0%
2018-Q32018-11-140.180.211.1%
2018-Q42019-03-120.230.244.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, ZTO Express (Cayman) annual sales rocketed an outstanding 34.80% to $17,604.50 M dollars from $13,060.10 marked in 2017. When comparing 2018 vs 2017, in contrary, profit margin (that is, the net income divided by revenues) remained steady a 0.70% to 24.90%.

ZTO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2014$3,904 M-$406 M10.4%-
2015$6,086 M55.92%$1,332 M21.9%227.68%
2016$9,789 M60.83%$2,054 M21.0%54.22%
2017$13,060 M33.42%$3,160 M24.2%53.84%
2018$17,605 M34.80%$4,383 M24.9%38.72%

Quarterly financial results

ZTO Express (Cayman) reported $5,627.53 M in sales for 2018-Q4, a 32.89% improvement compared to previous quarter. Reported quarter earnings marked $1,275.54 million with a profit margin of 22.67%. Profit margin declined a -2.36% compared to previous quarter when profit margin was 25.02%. When comparing sales to same quarter last year, ZTO Express (Cayman) sales marked an astounding gain and climbed a 29.94%. Looking back to recent quarterly results, ZTO Express (Cayman) posted 3 positive quarters in a row.
ZTO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$380 M-$73 M19.3%-
2017-Q3$472 M24.29%$108 M22.8%47.21%
2017-Q4$4,331 M816.81%$1,222 M28.2%1,034.32%
2018-Q1$3,544 M-18.16%$557 M15.7%-54.45%
2018-Q2$4,198 M18.44%$1,491 M35.5%167.81%
2018-Q3$4,235 M0.87%$1,060 M25.0%-28.93%
2018-Q4$5,628 M32.89%$1,276 M22.7%20.37%

ZTO Express (Cayman) ownership

When you are planning to invest in a company, it's worth to review its ownership structure.

ZTO Express (Cayman) shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 0.31% of all shares.

In case of ZTO Express (Cayman) stock, 36.49% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for ZTO stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to ZTO Express (Cayman):

ZTO
Market cap$19.3 B
Total shares782.0 M
Float shares641.7 M
  - Institutional holdings (%)36.5%
  - Insider holdings (%)0.3%
Shares in short selling0.0%

ZTO summary

Friday, February 21st, 2020
Open$25.05
Close$24.72
Day range$24.57 - $25.05
Previous close$25.17
Session gain-1.79%
Average true range$0.72
50d mov avg$23.15
100d mov avg$22.25
200d mov avg$20.87
Daily pattern
Weekly pattern lb03c

ZTO Express (Cayman) performance

To measure stock performance is always good to benchmark with competitors or related stocks. For ZTO Express (Cayman), the comparison is made against .
Stock3m6m12m
ZTOZTO Express (Caym...19.19%26.51%27.75%

ZTO Express (Cayman) competitors

Unfortunately, we could not find any public company that could be defined as ZTO Express (Cayman) competitor. This doesn't mean ZTO Express (Cayman) does not have any competitor in the market, it's just we could not detected it.