United Parcel Service (UPS) closed at $94 in the latest trading session, marking a +1.09% move from the prior day. The stock outpaced the S&P 500's daily loss of 1.71%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.87%.
Prior to today's trading, shares of the package delivery service had lost 12.69% over the past month. This has was narrower than the Transportation sector's loss of 16.62% and lagged the S&P 500's loss of 9.13% in that time.
Investors will be hoping for strength from UPS as it approaches its next earnings release. On that day, UPS is projected to report earnings of $1.42 per share, which would represent year-over-year growth of 2.16%. Our most recent consensus estimate is calling for quarterly revenue of $18.04 billion, up 5.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.89 per share and revenue of $77.49 billion, which would represent changes of +4.78% and +4.58%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for UPS. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 has moved 0.12% lower. UPS is currently a Zacks Rank #3 (Hold).
Investors should also note UPS's current valuation metrics, including its Forward P/E ratio of 11.79. Its industry sports an average Forward P/E of 11.24, so we one might conclude that UPS is trading at a premium comparatively.
We can also see that UPS currently has a PEG ratio of 1.36. 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 1.19 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 60, putting it in the top 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.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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