United Parcel Service (UPS) closed at $155.43 in the latest trading session, marking a -1.4% move from the prior day. This change was narrower than the S&P 500's 1.64% loss on the day. Meanwhile, the Dow lost 1.08%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Coming into today, shares of the package delivery service had lost 6.66% in the past month. In that same time, the Transportation sector lost 2.87%, while the S&P 500 gained 0.89%.
United Parcel Service will be looking to display strength as it nears its next earnings release, which is expected to be October 26, 2023. On that day, United Parcel Service is projected to report earnings of $1.89 per share, which would represent a year-over-year decline of 36.79%. Our most recent consensus estimate is calling for quarterly revenue of $21.98 billion, down 9.01% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.46 per share and revenue of $92.78 billion. These totals would mark changes of -26.89% and -7.54%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 3.11% lower. United Parcel Service is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 16.67. For comparison, its industry has an average Forward P/E of 15.54, 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 1.67. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. UPS's industry had an average PEG ratio of 1.67 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 60, putting it in the top 24% 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.
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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