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United Parcel Service (UPS) Gains But Lags Market: What You Should Know

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In the latest trading session, United Parcel Service (UPS) closed at $175.88, marking a +0.99% move from the previous day. This change lagged the S&P 500's 1.46% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq lost 0.17%.

Heading into today, shares of the package delivery service had lost 4.9% over the past month, outpacing the Transportation sector's loss of 6.24% and the S&P 500's loss of 6.94% 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 July 26, 2022. In that report, analysts expect United Parcel Service to post earnings of $3.15 per share. This would mark year-over-year growth of 2.94%. Our most recent consensus estimate is calling for quarterly revenue of $24.66 billion, up 5.26% from the year-ago period.

UPS's full-year Zacks Consensus Estimates are calling for earnings of $12.83 per share and revenue of $102.29 billion. These results would represent year-over-year changes of +5.77% and +5.15%, respectively.

Investors should also note any recent changes to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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, the Zacks Consensus EPS estimate remained stagnant. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, United Parcel Service currently has a Forward P/E ratio of 13.58. For comparison, its industry has an average Forward P/E of 13.58, which means United Parcel Service is trading at a no noticeable deviation to the group.

Also, we should mention that UPS has a PEG ratio of 1.52. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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