ZTO Express Stock Rises To Top Tier After Profits Grew 50% Last Quarter

When a company’s Relative Strength Rating rises above 80, that means it’s poised for strong growth. When a company’s other key ratings are even better, that’s for sure one to keep an eye on. On Tuesday the Relative Strength (RS) Rating for delivery service ZTO Express (ZTO) popped to 84, upgraded from 77. ZTO Express stock is up about 60% from a late October low.

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Market research shows that the stocks that go on to make the biggest gains often have an 80 or better RS Rating in the early stages of their moves. ZTO Express just joined that select group.

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ZTO Express Stock’s Other Major Ratings Shine

The China-based delivery service competes with its much larger peers FedEx (FDX) and UPS (UPS) in the China delivery market. Both U.S.-based delivery companies have robust services in China. UPS says it has more than 200 flights weekly to the Middle Kingdom. FedEx also has a large number of flights to and from China weekly.

ZTO Express stock has a 92 Earnings Per Share Rating, of a best-possible 99, putting it in the top 8% of all stocks for earnings growth. Its Composite Rating is 90 and it boasts an A- Accumulation/Distribution Rating on an A+ to E scale with A+ tops. ZTO Express bottomed at 16.27 on Oct. 31. From there it’s risen more than 60% to trade at 25.39 Tuesday afternoon, down 1.7% for the day.

ZTO Express stock is currently considered extended and out of buy range after clearing a 23.22 buy point in a first-stage flat base. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week line.

Revenue for the delivery service rose 10% last quarter to $1.26 billion. The prior three periods its sales rose 15%, 26% and then 14%. That compares with UPS total sales of $24.2 billion in its most recent quarter.

Meanwhile, ZTO’s earnings last quarter shot up 50% to 33 cents per share. The prior three quarters its EPS grew 42%, 50% and then 38%.

Among Top 5 In Industry Group

ZTO Express stock holds the No. 3 rank among its peers in the Transportation-Logistics industry group. Schneider National (SNDR) and Hub Group (HUBG) are also among the group’s highest-rated stocks.

When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.

This proprietary rating tracks technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock’s price action over the last 52 weeks matches up against other publicly traded companies.

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