United Parcel Service (UPS) ended the recent trading session at $101.09, demonstrating a +1.09% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.94%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 1.52%.
Shares of the package delivery service witnessed a loss of 1.3% over the previous month, beating the performance of the Transportation sector with its loss of 1.61%, and underperforming the S&P 500's gain of 1.67%.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company's upcoming EPS is projected at $1.57, signifying a 12.29% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $20.84 billion, indicating a 4.51% downward movement from the same quarter last year.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $7.08 per share and revenue of $87.37 billion. These results would represent year-over-year changes of -8.29% and -4.06%, respectively.
It is also important to note the recent changes to analyst estimates for United Parcel Service. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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 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, there's been no change in the Zacks Consensus EPS estimate. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, United Parcel Service is presently being traded at a Forward P/E ratio of 14.12. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 14.12.
It is also worth noting that UPS currently has a PEG ratio of 1.75. 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. UPS's industry had an average PEG ratio of 1.75 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 191, 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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