United Parcel Service (UPS) closed the most recent trading day at $100.40, moving +1.14% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.96%. At the same time, the Dow added 0.89%, and the tech-heavy Nasdaq gained 0.94%.
Shares of the package delivery service have appreciated by 4.09% over the course of the past month, outperforming the Transportation sector's loss of 2.22%, and the S&P 500's gain of 0.5%.
The upcoming earnings release of United Parcel Service will be of great interest to investors. It is anticipated that the company will report an EPS of $1.57, marking a 12.29% fall 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.
Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. United Parcel Service is currently a Zacks Rank #3 (Hold).
Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 14.02. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 14.02.
It's also important to note that UPS currently trades at a PEG ratio of 1.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 101, finds itself in the top 42% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in 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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