United Parcel Service (UPS) closed the most recent trading day at $96.74, moving -0.83% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.56%. At the same time, the Dow lost 0.58%, and the tech-heavy Nasdaq lost 0.51%.
Prior to today's trading, shares of the package delivery service had gained 0.85% over the past month. This has lagged the Transportation sector's gain of 9.07% and the S&P 500's gain of 7.37% in that time.
Investors will be eagerly watching for the performance of United Parcel Service in its upcoming earnings disclosure. The company is expected to report EPS of $1.57, down 12.29% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $20.84 billion, down 4.51% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.08 per share and a revenue of $87.37 billion, signifying shifts of -8.29% and -4.06%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for United Parcel Service. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 7.75% decrease. United Parcel Service currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 13.77. For comparison, its industry has an average Forward P/E of 13.77, which means United Parcel Service is trading at no noticeable deviation to the group.
Also, we should mention that UPS has a PEG ratio of 1.71. 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. As of the close of trade yesterday, the Transportation - Air Freight and Cargo industry held an average PEG ratio of 1.71.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 187, which puts it in the bottom 25% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Parcel Service, Inc. (UPS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
