Here's Why Investors Should Avoid ZTO Express (ZTO) Stock Now
ZTO Express Cayman Inc.’s ZTO financial stability is challenged by escalated operating expenses. Elevated labor costs are further putting a strain on the company’s bottom line, thereby making it an unattractive choice for investors’ portfolios.Weak Zacks Rank: ZTO currently carries a Zacks Rank #4 .Unimpressive Price Performance: ZTO Express’ shares have plunged 15.6% in the past year compared with its industry’s 7.8% decline.Bearish Industry Rank: The industry to which ZTO belongs currently has a Zacks Industry Rank of 152 . Such an unfavorable rank places it in the bottom 39% of Zacks Industries.Studies show that 50% of a stock price movement is directly related to the performance of the industry group it belongs to.High Costs Represent a Major Headwind: The northward movement in operating expenses is hurting ZTO Express’bottom line, challenging its financial stability. For example, in the second quarter of 2024, total operating expenses rose 5% year over year. The surge in operating