United Parcel Service (UPS) ended the recent trading session at $102.08, demonstrating a +1.11% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.79%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 1.38%.
Shares of the package delivery service witnessed a gain of 9.25% over the previous month, trailing the performance of the Transportation sector with its gain of 9.32%, and outperforming the S&P 500's gain of 0.87%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. The company is predicted to post an EPS of $2.18, indicating a 20.73% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $23.88 billion, showing a 5.6% drop compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.89 per share and revenue of $87.95 billion, indicating changes of -10.75% and -3.43%, respectively, compared to the previous 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, United Parcel Service possesses a Zacks Rank of #3 (Hold).
Digging into valuation, United Parcel Service currently has a Forward P/E ratio of 14.65. This expresses a discount compared to the average Forward P/E of 15.68 of its industry.
It is also worth noting that UPS currently has a PEG ratio of 2.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 2.16 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 99, this industry ranks in the top 41% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within 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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