United Parcel Service (UPS) Falls More Steeply Than Broader Market: What Investors Need to Know
United Parcel Service (UPS) closed at $147.77 in the latest trading session, marking a -0.34% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.17% for the day. Meanwhile, the Dow experienced a drop of 0.06%, and the technology-dominated Nasdaq saw a decrease of 0.55%.
Heading into today, shares of the package delivery service had gained 2.21% over the past month, lagging the Transportation sector's gain of 3.07% and the S&P 500's gain of 3.98% in that time.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company's earnings per share (EPS) are projected to be $1.57, reflecting a 28.64% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $21.98 billion, showing a 4.1% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $8.30 per share and a revenue of $93.29 billion, demonstrating changes of -5.47% and +2.56%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Parcel Service. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 11.66% fall in the Zacks Consensus EPS estimate. United Parcel Service currently has a Zacks Rank of #3 (Hold).
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 17.86. This denotes a premium relative to the industry's average Forward P/E of 15.75.
Investors should also note that UPS has a PEG ratio of 1.79 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 193, positioning it in the bottom 24% 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.
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
