United Parcel Service (UPS) closed the most recent trading day at $160.51, moving -0.53% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.31%. Meanwhile, the Dow lost 0.39%, and the Nasdaq, a tech-heavy index, lost 2.7%.
Heading into today, shares of the package delivery service had gained 0.67% over the past month, lagging the Transportation sector's gain of 6.98% and the S&P 500's gain of 1.32% in that time.
UPS will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2021. On that day, UPS is projected to report earnings of $1.66 per share, which would represent year-over-year growth of 44.35%. Our most recent consensus estimate is calling for quarterly revenue of $20.5 billion, up 13.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $8.80 per share and revenue of $86.22 billion, which would represent changes of +6.93% and +1.88%, respectively, from the prior year.
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.
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. Within the past 30 days, our consensus EPS projection has moved 5.19% higher. UPS is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, UPS currently has a Forward P/E ratio of 18.34. For comparison, its industry has an average Forward P/E of 15.75, which means UPS is trading at a premium to the group.
We can also see that UPS currently has a PEG ratio of 2.1. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.68 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.