United Parcel Service (UPS) Gains As Market Dips: What You Should Know
In the latest trading session, United Parcel Service (UPS) closed at $90.49, marking a +0.28% move from the previous day. This move outpaced the S&P 500's daily loss of 3.17%. Elsewhere, the Dow lost 3.77%, while the tech-heavy Nasdaq lost 2.28%.
Prior to today's trading, shares of the package delivery service had lost 16.44% over the past month. This has lagged the Transportation sector's loss of 11.57% and the S&P 500's loss of 8.05% in that time.
Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. In that report, analysts expect UPS to post earnings of $1.42 per share. This would mark year-over-year growth of 2.16%. Meanwhile, our latest consensus estimate is calling for revenue of $18.04 billion, up 5.12% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.90 per share and revenue of $77.49 billion. These totals would mark changes of +4.91% and +4.58%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for UPS. These revisions help to show the ever-changing nature of near-term business trends. 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. 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, 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. Within the past 30 days, our consensus EPS projection has moved 1.06% lower. UPS is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that UPS has a Forward P/E ratio of 11.43 right now. This valuation marks a premium compared to its industry's average Forward P/E of 11.16.
Meanwhile, UPS's PEG ratio is currently 1.32. 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 1.2 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 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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