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United Parcel Service (UPS) Gains As Market Dips: What You Should Know

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United Parcel Service (UPS - Free Report) closed at $192.87 in the latest trading session, marking a +0.98% move from the prior day. This move outpaced the S&P 500's daily loss of 0.21%. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.64%.

Heading into today, shares of the package delivery service had gained 1.64% over the past month, lagging the Transportation sector's gain of 2.38% and the S&P 500's gain of 7.71% in that time.

Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release, which is expected to be April 25, 2023. On that day, United Parcel Service is projected to report earnings of $2.33 per share, which would represent a year-over-year decline of 23.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.94 billion, down 5.92% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.47 per share and revenue of $97.62 billion, which would represent changes of -11.36% and -2.71%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.27% lower. United Parcel Service is currently a Zacks Rank #3 (Hold).

Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 16.65. This represents a premium compared to its industry's average Forward P/E of 16.13.

We can also see that UPS currently has a PEG ratio of 2.32. 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 1.87 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 105, putting it in the top 42% 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.

To follow UPS in the coming trading sessions, be sure to utilize Zacks.com.


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