United Parcel Service (UPS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, United Parcel Service (UPS) closed at $186.84, marking a -0.63% move from the previous day. This change lagged the S&P 500's daily loss of 0.28%.
Prior to today's trading, shares of the package delivery service had lost 2.73% over the past month. This has lagged the Transportation sector's loss of 1.36% and the S&P 500's loss of 0.56% in that time.
UPS will be looking to display strength as it nears its next earnings release. In that report, analysts expect UPS to post earnings of $2.53 per share. This would mark year-over-year growth of 10.96%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.71 billion, up 6.93% from the year-ago period.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $11.16 per share and revenue of $94.69 billion. These results would represent year-over-year changes of +35.6% and +11.89%, respectively.
Investors might also notice recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. UPS is currently a Zacks Rank #3 (Hold).
Looking at its valuation, UPS is holding a Forward P/E ratio of 16.84. For comparison, its industry has an average Forward P/E of 15.44, which means UPS is trading at a premium to the group.
Meanwhile, UPS's PEG ratio is currently 1.45. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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