United Parcel Service (UPS) closed at $166.96 in the latest trading session, marking a -0.41% move from the prior day. This change was narrower than the S&P 500's daily loss of 0.96%. Meanwhile, the Dow lost 0.48%, and the Nasdaq, a tech-heavy index, lost 2.22%.
Coming into today, shares of the package delivery service had gained 6.09% in the past month. In that same time, the Transportation sector lost 0.49%, while the S&P 500 lost 4.04%.
Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. On that day, UPS is projected to report earnings of $1.77 per share, which would represent a year-over-year decline of 14.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $19.95 billion, up 8.92% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $6.94 per share and revenue of $80.35 billion. These totals would mark changes of -7.84% and +8.44%, respectively, from last year.
Any recent changes to analyst estimates for UPS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.91% higher. UPS is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note UPS's current valuation metrics, including its Forward P/E ratio of 24.15. Its industry sports an average Forward P/E of 16.72, so we one might conclude that UPS is trading at a premium comparatively.
We can also see that UPS currently has a PEG ratio of 3.06. 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 industry currently had an average PEG ratio of 2.23 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 5, putting it in the top 2% 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.
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
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