ZTO Stock Up 11.4% in 3 Months: Can the Momentum Be Sustained in 2026?

ZTO Express Cayman ZTO shares have performed exceedingly well on the bourse of late. Shares of this Shanghai-based company have surged 11.4% over the past three months, outperforming the Zacks Transportation sector’s 9% rise.

Given the impressive price performance, let's take a deeper look at the factors driving growth at this express delivery player, which currently sports a Zacks Rank #1 (Strong Buy), and assess whether there is potential for continued gains.

ZTO’s continued expansion reflects the broader momentum in China’s express delivery sector, with national parcel volumes surpassing 150 billion, well ahead of last year, underscoring resilient consumer demand and a steadily improving economy. By strengthening nationwide and rural logistics networks, integrating county township village delivery systems and enhancing infrastructure in central and western regions, the industry is accelerating the efficient flow of goods and narrowing urban-rural consumption gaps.

At the same time, digitalization, smart logistics and policy support are enabling faster links between production and distribution. These factors are positioning express companies like ZTO as critical enablers of a unified national market while also facing rising demands for efficiency, sustainability and service quality as volumes continue to scale. Robust parcel volume growth remains a major tailwind for ZTO Express, as evidenced by 9.8% year-over-year increase in third-quarter 2025 volumes, alongside the strong performance of its core express delivery services unit. Revenues from this segment rose 11.6% year over year, providing a meaningful lift to ZTO’s top line. Looking ahead, the company expects 2025 parcel volume to reach 38.2 billion to 38.7 billion, implying solid year-over-year growth of 12.3% to 13.8% and reinforcing confidence in its growth trajectory.

The company’s consistency in strengthening its liquidity position is also encouraging, which is evident in the steady rise of its current ratio from 0.96 in the third quarter of 2024 to 1.38 in the third quarter of 2025. A current ratio above one is generally considered desirable, as it signals that ZTO has adequate short-term assets to comfortably meet its near-term obligations, underscoring improved financial stability.

Estimate Revisions to Head North

Driven by the positives discussed above, the Zacks Consensus Estimate for the full-year 2025 and full-year 2026 has been revised 9.2% and 10.1% upward over the past 60 days, respectively.

Other Stocks to Consider

Investors interested in the Zacks Transportation sector may also consider Expeditors International of Washington EXPD and Global Ship Lease GSL.

EXPD currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 3.50% for the current year.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, delivering an average beat of 13.9%.

Global Ship Lease currently carries a Zacks Rank #2 (Buy).

GSL has an expected earnings growth rate of 2.60% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in the trailing four quarters, delivering an average beat of 16.8%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research