United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, United Parcel Service (UPS) closed at $102.02, marking a +1.61% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.41%. Elsewhere, the Dow gained 0.39%, while the tech-heavy Nasdaq added 0.57%.
Prior to today's trading, shares of the package delivery service had lost 1.12% over the past month. This has was narrower than the Transportation sector's loss of 2.02% and lagged the S&P 500's gain of 0.1% in that time.
Investors will be hoping for strength from UPS as it approaches its next earnings release. On that day, UPS is projected to report earnings of $1.93 per share, which would represent a year-over-year decline of 0.52%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.94 billion, up 2.77% from the year-ago period.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $7.46 per share and revenue of $74.46 billion. These results would represent year-over-year changes of +3.04% and +3.62%, respectively.
Investors should also note any recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 past month, the Zacks Consensus EPS estimate has moved 0.1% lower. UPS is currently a Zacks Rank #4 (Sell).
In terms of valuation, UPS is currently trading at a Forward P/E ratio of 13.45. For comparison, its industry has an average Forward P/E of 13.45, which means UPS is trading at a no noticeable deviation to the group.
We can also see that UPS currently has a PEG ratio of 1.55. 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 was holding an average PEG ratio of 1.16 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 19% 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.
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.