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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 the most recent trading day at $186.85, moving +0.56% from the previous trading session. This move lagged the S&P 500's daily gain of 0.59%. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq lost 0.02%.

Coming into today, shares of the package delivery service had gained 6.48% in the past month. In that same time, the Transportation sector gained 5.55%, while the S&P 500 gained 7.25%.

Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release, which 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 $24.76 billion, up 5.71% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $12.76 per share and revenue of $102.15 billion, which would represent changes of +5.19% and +5%, 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 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. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.31% lower within the past month. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 14.56. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.56.

It is also worth noting that UPS currently has a PEG ratio of 1.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.24 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 64, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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