In the latest close session, United Parcel Service (UPS) was down 1.57% at $82.58. This move lagged the S&P 500's daily loss of 0.5%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 0.5%.
Heading into today, shares of the package delivery service had lost 4.51% over the past month, lagging the Transportation sector's loss of 2.03% and the S&P 500's gain of 2.74%.
The upcoming earnings release of United Parcel Service will be of great interest to investors. In that report, analysts expect United Parcel Service to post earnings of $1.33 per share. This would mark a year-over-year decline of 24.43%. In the meantime, our current consensus estimate forecasts the revenue to be $20.86 billion, indicating a 6.23% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $6.5 per share and a revenue of $87.5 billion, demonstrating changes of -15.8% and -3.92%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.41% downward. United Parcel Service is currently a Zacks Rank #4 (Sell).
Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 12.91. This valuation marks a discount compared to its industry average Forward P/E of 12.95.
We can also see that UPS currently has a PEG ratio of 1.55. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.55 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 192, positioning it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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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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