United Parcel Service (UPS) Laps the Stock Market: Here's Why
The latest trading session saw United Parcel Service (UPS) ending at $155.32, denoting a +0.36% adjustment from its last day's close. This change outpaced the S&P 500's 0.32% gain on the day. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.2%.
The the stock of package delivery service has risen by 4.38% in the past month, leading the Transportation sector's gain of 2.86% and undershooting the S&P 500's gain of 5.11%.
The investment community will be closely monitoring the performance of United Parcel Service in its forthcoming earnings report. The company is scheduled to release its earnings on April 23, 2024. On that day, United Parcel Service is projected to report earnings of $1.55 per share, which would represent a year-over-year decline of 29.55%. Our most recent consensus estimate is calling for quarterly revenue of $21.98 billion, down 4.14% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.29 per share and a revenue of $93.29 billion, indicating changes of -5.58% and +2.56%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Parcel Service. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 0.1% lower. Currently, United Parcel Service is carrying a Zacks Rank of #3 (Hold).
Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 18.66. For comparison, its industry has an average Forward P/E of 17.48, which means United Parcel Service is trading at a premium to the group.
It is also worth noting that UPS currently has a PEG ratio of 1.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Transportation - Air Freight and Cargo industry was having an average PEG ratio of 1.76.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 185, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
