In the latest trading session, United Parcel Service (UPS) closed at $108.62, marking a +1.14% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.25%.
The package delivery service's shares have seen an increase of 6.38% over the last month, surpassing the Transportation sector's gain of 0.81% and the S&P 500's gain of 1.57%.
Analysts and investors alike will be keeping a close eye on the performance of United Parcel Service in its upcoming earnings disclosure. The company's earnings report is set to go public on January 27, 2026. The company's upcoming EPS is projected at $2.23, signifying a 18.91% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $23.99 billion, showing a 5.18% drop compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.94 per share and a revenue of $88.05 billion, indicating changes of -10.1% and 0%, respectively, from the former year.
Investors might also notice recent changes 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% lower. At present, United Parcel Service boasts a Zacks Rank of #3 (Hold).
In the context of valuation, United Parcel Service is at present trading with a Forward P/E ratio of 14.74. This valuation marks a discount compared to its industry average Forward P/E of 17.08.
We can also see that UPS currently has a PEG ratio of 2.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.87.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 106, finds itself in the top 44% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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