ZACKSยท2025-08-29 17:31Core Viewpoint - ZTO Express (ZTO) is currently facing multiple challenges, making it an unattractive investment option [1] Financial Performance - The Zacks Consensus Estimate for ZTO's third-quarter 2025 earnings has decreased by 7.35% over the past 60 days, with a 3.89% downward revision for the current year [2] - ZTO's shares have declined by 7% over the past six months, while the transportation-services industry has grown by 4.9% [3] - ZTO's earnings are projected to decline by 10.78% year over year for 2025 [7] Cost and Revenue Challenges - In 2024, ZTO experienced a 14.2% year-over-year increase in total cost of revenues, which further escalated to a 21.5% increase in the first half of 2025 [8][9] - The company has revised its 2025 parcel volume forecast down to 38.8-40.1 billion from a previous estimate of 40.8-42.2 billion, indicating a reduction in expected year-over-year growth from 20-24% to 14-18% [8][9] Competitive Landscape - The domestic express delivery market is highly competitive, with major players like SF Express and STO Express posing significant challenges to ZTO [10] - ZTO's industry rank is currently at 223 out of 248 groups, placing it in the bottom 9% of Zacks industries, which suggests that the overall industry performance is weak [11]