In the latest trading session, United Parcel Service (UPS) closed at $85.20, marking a +1.4% move from the previous day. This move outpaced the S&P 500's daily loss of 0.13%. Meanwhile, the Dow lost 0.27%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Coming into today, shares of the package delivery service had lost 2.88% in the past month. In that same time, the Transportation sector lost 0.76%, while the S&P 500 gained 2.71%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. In that report, analysts expect United Parcel Service to post earnings of $1.34 per share. This would mark a year-over-year decline of 23.86%. Alongside, our most recent consensus estimate is anticipating revenue of $20.86 billion, indicating a 6.21% downward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.51 per share and revenue of $87.51 billion, indicating changes of -15.67% and -3.91%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for United Parcel Service. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.24% downward. United Parcel Service currently has a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that United Parcel Service has a Forward P/E ratio of 12.91 right now. For comparison, its industry has an average Forward P/E of 12.91, which means United Parcel Service is trading at no noticeable deviation to the group.
It's also important to note that UPS currently trades at a PEG ratio of 1.55. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. UPS's industry had an average PEG ratio of 1.55 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 230, this industry ranks in the bottom 7% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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United Parcel Service, Inc. (UPS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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