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United Parcel Service (UPS) Gains But Lags Market: What You Should Know
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United Parcel Service (UPS - Free Report) closed at $185.17 in the latest trading session, marking a +0.29% move from the prior day. The stock lagged the S&P 500's daily gain of 0.36%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Prior to today's trading, shares of the package delivery service had lost 0.47% over the past month. This has was narrower than the Transportation sector's loss of 8.76% and the S&P 500's loss of 6.59% in that time.
Wall Street will be looking for positivity from United Parcel Service as it approaches its next earnings report date. This is expected to be July 26, 2022. In that report, analysts expect United Parcel Service to post earnings of $3.15 per share. This would mark year-over-year growth of 2.94%. Our most recent consensus estimate is calling for quarterly revenue of $24.66 billion, up 5.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.79 per share and revenue of $102.29 billion, which would represent changes of +5.44% and +5.15%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% lower. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 14.44. For comparison, its industry has an average Forward P/E of 13.9, 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 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
To follow UPS in the coming trading sessions, be sure to utilize Zacks.com.
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United Parcel Service (UPS) Gains But Lags Market: What You Should Know
United Parcel Service (UPS - Free Report) closed at $185.17 in the latest trading session, marking a +0.29% move from the prior day. The stock lagged the S&P 500's daily gain of 0.36%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, lost 0.1%.
Prior to today's trading, shares of the package delivery service had lost 0.47% over the past month. This has was narrower than the Transportation sector's loss of 8.76% and the S&P 500's loss of 6.59% in that time.
Wall Street will be looking for positivity from United Parcel Service as it approaches its next earnings report date. This is expected to be July 26, 2022. In that report, analysts expect United Parcel Service to post earnings of $3.15 per share. This would mark year-over-year growth of 2.94%. Our most recent consensus estimate is calling for quarterly revenue of $24.66 billion, up 5.26% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.79 per share and revenue of $102.29 billion, which would represent changes of +5.44% and +5.15%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% lower. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 14.44. For comparison, its industry has an average Forward P/E of 13.9, 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 1.61. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.27 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
To follow UPS in the coming trading sessions, be sure to utilize Zacks.com.