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United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know

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United Parcel Service (UPS) closed the most recent trading day at $178.63, moving +1.41% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.95%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 0.23%.

Coming into today, shares of the package delivery service had gained 1.32% in the past month. In that same time, the Transportation sector lost 3.6%, while the S&P 500 lost 3.49%.

United Parcel Service will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2022. The company is expected to report EPS of $3.15, up 2.94% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $24.66 billion, up 5.26% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.83 per share and revenue of $102.29 billion. These totals would mark changes of +5.77% and +5.15%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection 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 13.73. For comparison, its industry has an average Forward P/E of 13.73, which means United Parcel Service is trading at a no noticeable deviation to the group.

It is also worth noting that UPS currently has a PEG ratio of 1.53. 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. UPS's industry had an average PEG ratio of 1.28 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% 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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