United Parcel Service (UPS) Stock Sinks As Market Gains: What You Should Know
United Parcel Service (UPS) closed the most recent trading day at $211.22, moving -0.02% from the previous trading session. This change lagged the S&P 500's daily gain of 0.28%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the package delivery service had gained 3.7% over the past month, outpacing the Transportation sector's gain of 0.32% and the S&P 500's gain of 0.12% in that time.
United Parcel Service will be looking to display strength as it nears its next earnings release, which is expected to be February 1, 2022. In that report, analysts expect United Parcel Service to post earnings of $3.06 per share. This would mark year-over-year growth of 15.04%. Our most recent consensus estimate is calling for quarterly revenue of $26.97 billion, up 8.35% from the year-ago period.
It is also important to note the recent changes to analyst estimates for United Parcel Service. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 17.75. This represents a premium compared to its industry's average Forward P/E of 14.5.
We can also see that UPS currently has a PEG ratio of 1.47. 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. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.47 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 13, which puts it in the top 6% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow UPS in the coming trading sessions, be sure to utilize Zacks.com.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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