United Parcel Service (UPS) closed the most recent trading day at $107.98, moving -1.21% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.03% for the day. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq gained 0.28%.
The package delivery service's shares have seen an increase of 8.58% over the last month, surpassing the Transportation sector's gain of 1.49% and the S&P 500's gain of 0.6%.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company is slated to reveal its earnings on January 27, 2026. In that report, analysts expect United Parcel Service to post earnings of $2.22 per share. This would mark a year-over-year decline of 19.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $24.01 billion, down 5.1% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $6.97 per share and revenue of $88.18 billion. These totals would mark changes of -9.72% and 0%, respectively, from last year.
Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.17% higher. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, United Parcel Service is at present trading with a Forward P/E ratio of 14.91. For comparison, its industry has an average Forward P/E of 16.85, which means United Parcel Service is trading at a discount to the group.
It is also worth noting that UPS currently has a PEG ratio of 2.36. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.89 as trading concluded yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 40% of all 250+ industries.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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