NYSE:ZTO: a strong growth stock preparing for the next leg up?.

Exploring Growth Potential: ZTO EXPRESS CAYMAN INC-ADR (NYSE:ZTO) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and ZTO EXPRESS CAYMAN INC-ADR has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected ZTO EXPRESS CAYMAN INC-ADR on our screen for growth with base formation, suggesting it merits a closer look.

Growth Assessment of NYSE:ZTO

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NYSE:ZTO boasts a 8 out of 10:

• ZTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.39%, which is quite impressive.
• Measured over the past years, ZTO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.52% on average per year.
• Looking at the last year, ZTO shows a quite strong growth in Revenue. The Revenue has grown by 13.18% in the last year.
• Measured over the past years, ZTO shows a very strong growth in Revenue. The Revenue has been growing by 22.05% on average per year.
• ZTO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.42% yearly.
• ZTO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.91% yearly.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NYSE:ZTO's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ZTO has achieved a 6 out of 10:

• An Altman-Z score of 4.79 indicates that ZTO is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.79, ZTO belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
• The Debt to FCF ratio of ZTO is 1.61, which is an excellent value as it means it would take ZTO, only 1.61 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.61, ZTO is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
• ZTO has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
• Looking at the Debt to Equity ratio, with a value of 0.25, ZTO is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
• ZTO has a better Quick ratio (1.31) than 62.50% of its industry peers.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:ZTO scores a 7 out of 10:

• ZTO has a better Return On Assets (10.13%) than 87.50% of its industry peers.
• ZTO has a Return On Equity of 14.86%. This is in the better half of the industry: ZTO outperforms 68.75% of its industry peers.
• ZTO's Return On Invested Capital of 10.84% is fine compared to the rest of the industry. ZTO outperforms 75.00% of its industry peers.
• The last Return On Invested Capital (10.84%) for ZTO is above the 3 year average (8.39%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 22.13%, ZTO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• The Operating Margin of ZTO (25.21%) is better than 100.00% of its industry peers.
• With a decent Gross Margin value of 29.42%, ZTO is doing good in the industry, outperforming 62.50% of the companies in the same industry.

How do we evaluate the setup for NYSE:ZTO?

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:ZTO currently holds a 7 as its setup rating, suggesting a particular level of consolidation in the stock.

ZTO has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 24.06, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of ZTO

Check the latest full technical report of ZTO for a complete technical analysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.