United Parcel Service (UPS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, United Parcel Service (UPS) closed at $167.93, marking a -0.57% move from the previous day. This change lagged the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the package delivery service had lost 13.81% over the past month, lagging the Transportation sector's loss of 7.35% and the S&P 500's loss of 3.29% in that time.
Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $2.85, up 5.17% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $24.39 billion, up 5.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.83 per share and revenue of $101.7 billion. These totals would mark changes of +5.77% and +4.53%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for United Parcel Service. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.12% lower within the past month. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that United Parcel Service has a Forward P/E ratio of 13.16 right now. This valuation marks a premium compared to its industry's average Forward P/E of 12.03.
Investors should also note that UPS has a PEG ratio of 1.48 right now. 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. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.13 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 29% 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.
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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