ZTO stock: buy or sell?

ZTO stock price: $21.03 -6.24% At close on November 19th, 2019

Updated on:
November 19th, 2019

4

After marking all time highs yesterday, ZTO Express (Cayman) collapsed -6.24% to $21.03.

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

Should I buy ZTO stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with ZTO Express (Cayman) stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean ZTO will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is ZTO Express (Cayman) stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we found 1 rating published for ZTO stock in the last month.

Is ZTO a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-23UBS GroupNeutralBuy

ZTO stock analysis

Daily outlook

ZTO Express (Cayman) collapsed -6.24% to $21.03 after reaching all time highs yesterday.

After reaching all time highs yesterday, ZTO Express (Cayman) collapsed -6.24% to $21.03. Yesterday, ZTO hit new all time highs, pushing higher previous ATH of $22.69 recorded on November 8th. New ATHs are usual entry points for many trading setups as there aren't higher resistences. On August ZTO price bounced up over the SMA of 100 days demonstrating to be a significant support for this stock. On July, SMA50d and SMA100d crossed up triggering a rise of 5.26%.

ZTO stock chart (daily)

Weekly outlook

ZTO Express (Cayman) closed this week at $21.03 after marking a new all time high ($23.12) even it couldn't close with gains and plummed a frightening -5.99%. Late October ZTO boosted an outstanding 5.83% in just one week.

By mid April, SMA20w and SMA40w crossed up triggering a rise of 7.74%. Since late March when ZTO stock price broke up the SMA40w line, it gained $3.58 (20.52%).

ZTO stock chart (weekly)

ZTO stock price history

ZTO stock went public on October 27th, 2016 with a price of $17.921. Since then, ZTO stock grew a 17.40%, with an average of 5.80% per year. If you had invested right after ZTO's IPO a $1,000 in ZTO stock in 2016, it would worth $174.00 today.

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

ZTO stock historical price chart

ZTO stock reached all-time highs yesterday with a price of $23.12.

ZTO stock price target

Predicting the price evolution of a stock or any financial instrument in a reliable and repeatable way is probably impossible. 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 forecast 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 gain for the Earnings per Share (EPS) ratio. Analyst expected $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

Compared to 2017, last anual sales report draw a dazzling growth of 34.80% to $17,604.50 M USD. Nonetheless, its income margin (compared to revenues) stayed constant to 24.90%, that is $4,383.02 million.

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 million in revenues 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 turnover to same quarter last year, ZTO Express (Cayman) sales marked a super good gain and boosted a 29.94%. Looking back to recent quarterly results, ZTO Express (Cayman) posted 3 negative 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 shares of a company, it's worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For ZTO Express (Cayman), 0.29% of all outstanding shares are owned by its staff.

In case of ZTO Express (Cayman) stock, 33.13% 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):

ZTOPKOH
Market cap$16.4 B$401.9 M
Total shares782.1 M12.5 M
Float shares369.7 M8.4 M
  - Institutional holdings (%)33.1%54.6%
  - Insider holdings (%)0.3%31.0%
Shares in short selling0.0%0.0%

ZTO summary

Tuesday, November 19th, 2019
Open$22.18
Close$21.03
Day range$20.82 - $22.60
Previous close$22.43
Session gain-6.24%
Average true range$0.54
50d mov avg$21.43
100d mov avg$20.61
200d mov avg$19.71
Daily pattern
Weekly pattern

ZTO Express (Cayman) performance

To measure stock performance is always good to benchmark with competitors or related stocks. We compared ZTO Express (Cayman) against Array in the following table:
Stock3m6m12m
ZTOZTO Express (Caym...7.63%17.16%29.34%
PKOHPark-Ohio19.10%-5.38%-11.81%

ZTO Express (Cayman) competitors

Choosing a list of competitors for ZTO Express (Cayman) it's a hard job. We selected just one public company that in our opinion is related to and can be considered ZTO Express (Cayman) competitor: