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

·3 min read

United Parcel Service (UPS) closed at $180.03 in the latest trading session, marking a +1.88% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.2%.

Prior to today's trading, shares of the package delivery service had lost 15.22% over the past month. This has lagged the Transportation sector's loss of 12.78% and the S&P 500's loss of 9.94% in that time.

United Parcel Service will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. In that report, analysts expect United Parcel Service to post earnings of $2.86 per share. This would mark year-over-year growth of 5.54%. Meanwhile, our latest consensus estimate is calling for revenue of $24.39 billion, up 5.19% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.85 per share and revenue of $101.67 billion, which would represent changes of +5.94% and +4.5%, respectively, from the prior year.

Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. United Parcel Service is currently a Zacks Rank #3 (Hold).

Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 13.76. This valuation marks a premium compared to its industry's average Forward P/E of 11.66.

Also, we should mention that UPS has a PEG ratio of 1.55. 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. UPS's industry 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 35, putting it in the top 14% 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.

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

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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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