United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know
The latest trading session saw United Parcel Service (UPS) ending at $148.63, denoting a +0.88% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.11%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, lost 0.12%.
The package delivery service's shares have seen a decrease of 0.3% over the last month, not keeping up with the Transportation sector's gain of 1.53% and the S&P 500's gain of 3.55%.
Investors will be eagerly watching for the performance of United Parcel Service in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 23, 2024. The company is expected to report EPS of $1.54, down 30% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $21.98 billion, showing a 4.14% drop compared to the year-ago quarter.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $8.28 per share and revenue of $93.29 billion. These results would represent year-over-year changes of -5.69% and +2.56%, respectively.
Investors might also notice recent changes to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.3% downward. Currently, United Parcel Service is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 17.8. Its industry sports an average Forward P/E of 18.32, so one might conclude that United Parcel Service is trading at a discount comparatively.
Also, we should mention that UPS has a PEG ratio of 1.79. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.79.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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
