ZACKS·2026-01-21 18:01Core Viewpoint - ZTO Express (Cayman) Inc. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based solely on a company's changing earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - The recent upgrade reflects a 6.2% increase in the Zacks Consensus Estimate for ZTO Express over the past three months, with expected earnings of $1.64 per share for the fiscal year ending December 2025, unchanged from the previous year [9]. Impact on Stock Prices - Changes in earnings estimates are strongly correlated with near-term stock price movements, as institutional investors adjust their valuations based on these estimates, leading to buying or selling actions that affect stock prices [5]. - The upgrade to Zacks Rank 1 positions ZTO Express in the top 5% of Zacks-covered stocks, suggesting potential for higher stock prices in the near term due to improved earnings outlook [11]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [8]. - The system maintains a balanced distribution of ratings, ensuring that only the top 5% of stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [10].