ZTO Express (Cayman) Inc

The products managed by two star fund managers at Ruiyuan Fund, Fu Pengbo and Zhao Feng, have disclosed their second-quarter 2026 reports, revealing their latest top ten heavy-weight holdings. The Ruiyuan Growth Value Hybrid Fund, managed by Fu Pengbo and Zhu Lin, initiated a position in Focuslight Technologies for the first time with 4.5277 million shares, while significantly reducing holdings in Zhongji Innolight and Dongshan Precision. Its Hong Kong stock allocation dropped to a historic low of 3.35%. The Ruiyuan Balanced Value Three-Year Holding Fund, managed by Zhao Feng, bought back into WuXi Biologics after a one-year hiatus, with a position of 9.4275 million shares, and increased holdings in ZTO Express and China Resources Land. At the end of the second quarter, the Ruiyuan Growth Value Hybrid Fund had a net asset value of 22.201 billion yuan, an increase of 4.045 billion yuan from the end of the first quarter, with the Class A share net value growth rate at 45.79%. In their quarterly reports, the two fund managers stated that the portfolio added targets in high-power semiconductor lasers and micro-nano optical solutions, reduced holdings in internet technology companies, and believe that the high returns implied by excessively low valuations are certain.

ZTO Express has seen upward revisions to its full-year 2026 earnings estimates over the past 90 days, signaling broker confidence. The company's core express delivery revenue rose 22.5% year over year in the first quarter of 2026, driven by a 13.2% increase in parcel volume and an 8.2% rise in parcel unit price. ZTO Express projects 2026 parcel volume between 42.37 billion and 43.52 billion, reflecting 10% to 13% growth. The board also approved a new $1.5 billion share repurchase program in March 2026, effective through March 2028. With a forward price-to-earnings ratio of 10.31, below the industry's 16.40 and its own five-year median of 13.47, the stock appears attractively valued, earning a Zacks Rank #2 (Buy).

Zacks Equity Research identifies Expeditors International of Washington, C.H. Robinson Worldwide, and ZTO Express (Cayman) as transportation-service stocks worth monitoring despite a challenging industry environment. The Zacks Transportation-Services industry faces persistent freight downturns, with the Cass Freight Shipments Index declining 1.2% year over year in May, marking nine consecutive months of deterioration. Economic uncertainty remains elevated as the Federal Reserve held rates at 3.50-3.75% and trimmed its 2026 GDP growth forecast to 2.2% from 2.4%, while the Russia-Ukraine conflict intensifies. The industry carries a Zacks Industry Rank of 161, placing it in the bottom 35% of 247 Zacks industries, and its aggregate 2026 earnings estimate has decreased 10% year over year. Expeditors sports a Zacks Rank #1 (Strong Buy) and has beaten earnings estimates in each of the past four quarters with an average surprise of 14%. ZTO Express holds a Zacks Rank #2 (Buy) with a long-term earnings growth expectation of 13.5% and 2026 parcel volume guidance of 42.37 to 43.52 billion, reflecting 10-13% year-over-year growth. C.H. Robinson carries a Zacks Rank #3 (Hold) and is leveraging AI integration to boost margins and strengthen its competitive edge.