United Parcel Service (UPS) ended the recent trading session at $102.38, demonstrating a +1.52% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.07%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.03%.
The package delivery service's shares have seen an increase of 1.55% over the last month, not keeping up with the Transportation sector's gain of 2.01% and the S&P 500's gain of 3.94%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. It is anticipated that the company will report an EPS of $1.56, marking a 12.85% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $20.82 billion, reflecting a 4.59% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.01 per share and a revenue of $87.21 billion, representing changes of -9.2% and -4.24%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-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.
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 past month, the Zacks Consensus EPS estimate has shifted 0.98% downward. Currently, United Parcel Service is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, United Parcel Service is presently trading at a Forward P/E ratio of 14.38. This represents no noticeable deviation compared to its industry average Forward P/E of 14.38.
It's also important to note that UPS currently trades at a PEG ratio of 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Transportation - Air Freight and Cargo industry held an average PEG ratio of 1.95.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 201, positioning it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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