United Parcel Service (UPS) Declines More Than Market: Some Information for Investors

In the latest market close, United Parcel Service (UPS) reached $150, with a -1.49% movement compared to the previous day. This change lagged the S&P 500's daily loss of 1.23%. Elsewhere, the Dow saw a downswing of 1.36%, while the tech-heavy Nasdaq depreciated by 1.4%.

The package delivery service's shares have seen a decrease of 0.18% over the last month, not keeping up with the Transportation sector's gain of 1.27% and the S&P 500's gain of 1.61%.

The upcoming earnings release of United Parcel Service will be of great interest to investors. The company's earnings report is expected on April 23, 2024. On that day, United Parcel Service is projected to report earnings of $1.40 per share, which would represent a year-over-year decline of 36.36%. Meanwhile, the latest consensus estimate predicts the revenue to be $21.96 billion, indicating a 4.21% decrease compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.27 per share and a revenue of $93.39 billion, signifying shifts of -5.81% and +2.68%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.48% lower. Right now, United Parcel Service possesses a Zacks Rank of #3 (Hold).

In the context of valuation, United Parcel Service is at present trading with a Forward P/E ratio of 18.41. For comparison, its industry has an average Forward P/E of 18.13, which means United Parcel Service is trading at a premium to the group.

We can also see that UPS currently has a PEG ratio of 1.76. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.76 based on yesterday's closing prices.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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