#6 - ZTO Express (NYSE:ZTO)
If you’re looking for an indirect China stock play, ZTO Express Inc. (NYSE: ZTO) is a name to consider. The company provides express delivery and other value-added logistics services in China. Despite the country's economic slowdown, ZTO Express has delivered steady revenue and earnings.
Analysts are projecting 15% revenue growth this year and 10% growth in the next fiscal year. That, however, may not account for the expected demand from the government’s stimulus measures. Plus, the company is making a strategic pivot to focus on service quality as opposed to just going after market share.
ZTO stock is up 24% in the last month, which has pushed the stock into positive territory for the year. This may be as good as it gets for now. If the Chinese market fails to grow as hoped, ZTO Express will be hurt. But with analysts having a Moderate Buy rating on the stock, investors should view any pullback as an opportunity.
About ZTO Express (Cayman)
ZTO Express (Cayman) Inc provides express delivery and other value-added logistics services in the People's Republic of China. It offers freight forwarding services; and delivery services for e-commerce and traditional merchants, and other express service users. The company was founded in 2002 and is headquartered in Shanghai, the People's Republic of China.
- Current Price
- $19.21
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 3 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $27.03 (40.7% Upside)
