Here's Why Investors Should Avoid ZTO Express Stock Now

Core Viewpoint - ZTO Express Cayman Inc. is experiencing significant challenges due to escalating operating expenses and weak financial stability, making it an unattractive investment option for investors' portfolios [1] Financial Performance - The Zacks Consensus Estimate for current-year earnings has been revised downward by 1.7% over the past 60 days, with a 0.5% decrease for the next year, indicating a lack of confidence from brokers [2] - ZTO shares have declined by 5.7% over the past year, contrasting with a 5.9% rise in the industry [2] Industry Ranking - ZTO currently holds a Zacks Rank of 4 (Sell) and belongs to an industry with a Zacks Industry Rank of 191 out of 251, placing it in the bottom 24% of Zacks Industries [3] Operating Expenses - In Q2 2024, total operating expenses increased by 5% year over year, primarily due to a 17.5% rise in labor costs, totaling $683.7 million [4][5] - General supplies and expenses rose by 15$81.6 million, while interest expenses increased to $15.94 million during the same period [5] Competitive Landscape - The domestic express delivery market is highly competitive, with major players like SF Express and STO Express, which could further pressure ZTO's stock price if competition intensifies [6]