Why the Market Dipped But United Parcel Service (UPS) Gained Today
The most recent trading session ended with United Parcel Service (UPS) standing at $154.75, reflecting a +0.51% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.11% loss on the day. At the same time, the Dow added 0.12%, and the tech-heavy Nasdaq lost 0.41%.
The the stock of package delivery service has risen by 5.26% in the past month, leading the Transportation sector's gain of 1.84% and the S&P 500's gain of 2.7%.
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. In that report, analysts expect United Parcel Service to post earnings of $1.57 per share. This would mark a year-over-year decline of 28.64%. Meanwhile, the latest consensus estimate predicts the revenue to be $21.98 billion, indicating a 4.1% decrease compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $8.31 per share and a revenue of $93.29 billion, demonstrating changes of -5.35% and +2.56%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Currently, United Parcel Service is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, United Parcel Service currently has a Forward P/E ratio of 18.52. This valuation marks a premium compared to its industry's average Forward P/E of 16.18.
Also, we should mention that UPS has a PEG ratio of 1.95. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.95 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 236, placing it within the bottom 7% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
