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United Parcel Service (UPS) Dips More Than Broader Markets: What You Should Know

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United Parcel Service (UPS - Free Report) closed at $213.90 in the latest trading session, marking a -0.33% move from the prior day. This move lagged the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.25%, and the tech-heavy Nasdaq gained 0.33%.

Coming into today, shares of the package delivery service had gained 10.53% in the past month. In that same time, the Transportation sector gained 3.28%, while the S&P 500 gained 3.11%.

Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release. On that day, United Parcel Service is projected to report earnings of $3.05 per share, which would represent year-over-year growth of 14.66%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $26.97 billion, up 8.35% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.58 per share and revenue of $96.42 billion, which would represent changes of +40.7% and +13.93%, respectively, from the prior year.

Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 0.02% lower. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, United Parcel Service currently has a Forward P/E ratio of 18.53. This represents a premium compared to its industry's average Forward P/E of 17.58.

It is also worth noting that UPS currently has a PEG ratio of 1.53. 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 1.53 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 23, which puts it in the top 10% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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