ZTO Express Cayman (ZTO) Down 4.3% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for ZTO Express (Cayman) Inc. (ZTO). Shares have lost about 4.3% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is ZTO Express Cayman due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for ZTO Express (Cayman) Inc. before we dive into how investors and analysts have reacted as of late.ZTO Q1 Earnings Up Year over YearZTO Express reported first-quarter 2026 earnings of 43 cents per share, which improved from the year-ago quarter. Total revenues of $1.92 billion also improved from the year-ago reported quarter.Detailed Operational StatisticsRevenue from the core express delivery business increased 22.5% year over year, owing to a 13.2% growth in parcel volume and an 8.2% increase in parcel unit price. Key account revenue, generated by direct sales organizations, grew 92.2% year over year owing to increase in e-commerce return parcels.Revenues from freight forwarding services decreased 13% year over year. Revenue from sales of accessories, largely consisted of sales of thermal paper for digital waybills, rose 3.1% year over year. Other revenues were mainly derived from financing services.Gross profit increased 20.3% from the year-ago reported quarter. Gross margin rate fell to 24.4% from 24.7% in the year-ago period.Total operating expenses were RMB690.0 million ($100.0 million), compared with RMB283.8 million in the same period last year.ZTO Express exited the first quarter of 2026 with cash and cash equivalents of $1.65 billion compared with $1.43 billion at the end of the prior quarter.ZTO’s board has approved a new share repurchase program in March 2026, authorizing the repurchase of up to $1.5 billion of its shares over the next 24 months, effective from March 20, 2026, through March 20, 2028. ZTO Express anticipates to fund these repurchases utilizing its existing cash balance.Based on current market and operating conditions, ZTO Express reaffirms its 2026 parcel volume guidance in the range of 42.37 billion to 43.52 billion (reflecting 10-13% year over year growth).How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.VGM ScoresAt this time, ZTO Express Cayman has a average Growth Score of C, a score with the same score on the momentum front. However, the stock has a grade of A on the value side, putting it in the top quintile for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook ZTO Express Cayman has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Performance of an Industry PlayerZTO Express Cayman is part of the Zacks Transportation - Services industry. Over the past month, Expeditors International (EXPD), a stock from the same industry, has gained 1.4%. The company reported its results for the quarter ended March 2026 more than a month ago.Expeditors International reported revenues of $2.78 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $1.71 for the same period compares with $1.47 a year ago.Expeditors International is expected to post earnings of $1.56 per share for the current quarter, representing a year-over-year change of +16.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for Expeditors International. Also, the stock has a VGM Score of D.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks