Is NYSE:ZTO on the Verge of a Major Breakout as a Strong Growth Stock?

In this article, we'll take a closer look at ZTO EXPRESS CAYMAN INC-ADR (NYSE:ZTO) as a potential candidate for growth investing. While it's important for investors to conduct their own research, ZTO EXPRESS CAYMAN INC-ADR has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

How do we evaluate the Growth for 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:

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

Evaluating Health: NYSE:ZTO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:ZTO has received a 6 out of 10:

• ZTO has an Altman-Z score of 4.45. This indicates that ZTO is financially healthy and has little risk of bankruptcy at the moment.
• ZTO has a Altman-Z score of 4.45. This is in the better half of the industry: ZTO outperforms 75.00% of its industry peers.
• ZTO has a debt to FCF ratio of 1.61. This is a very positive value and a sign of high solvency as it would only need 1.61 years to pay back of all of its debts.
• ZTO has a Debt to FCF ratio of 1.61. This is in the better half of the industry: ZTO outperforms 68.75% of its industry peers.
• 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 62.50% of the companies in the same industry.
• Looking at the Quick ratio, with a value of 1.31, ZTO is in the better half of the industry, outperforming 62.50% of the companies in the same industry.

A Closer Look at Profitability for NYSE:ZTO

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:ZTO, the assigned 7 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 10.13%, ZTO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• ZTO has a better Return On Equity (14.86%) than 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.
• The Profit Margin of ZTO (22.13%) is better than 100.00% of its industry peers.
• Looking at the Operating Margin, with a value of 25.21%, ZTO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• ZTO has a Gross Margin of 29.42%. This is in the better half of the industry: ZTO outperforms 62.50% of its industry peers.

Looking at the Setup

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:ZTO has a 7 as its setup rating:

ZTO has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 23.23. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 22.26, a Stop Loss order could be placed below this zone.

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

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

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

Keep in mind

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.