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United Parcel Service (UPS) Stock Falls Amid Market Uptick: What Investors Need to Know
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United Parcel Service (UPS - Free Report) ended the recent trading session at $161.57, demonstrating a -0.84% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.45%.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company is slated to reveal its earnings on January 30, 2024. It is anticipated that the company will report an EPS of $2.47, marking a 31.77% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $25.41 billion, indicating a 5.99% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.80 per share and a revenue of $91.45 billion, representing changes of -31.99% and -8.85%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 18.52. This valuation marks a premium compared to its industry's average Forward P/E of 16.92.
One should further note that UPS currently holds a PEG ratio of 1.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Transportation - Air Freight and Cargo industry stood at 1.85 at the close of the market yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 217, placing it within the bottom 14% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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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United Parcel Service (UPS) Stock Falls Amid Market Uptick: What Investors Need to Know
United Parcel Service (UPS - Free Report) ended the recent trading session at $161.57, demonstrating a -0.84% swing from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.45%.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company is slated to reveal its earnings on January 30, 2024. It is anticipated that the company will report an EPS of $2.47, marking a 31.77% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $25.41 billion, indicating a 5.99% decrease compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $8.80 per share and a revenue of $91.45 billion, representing changes of -31.99% and -8.85%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.19% lower. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 18.52. This valuation marks a premium compared to its industry's average Forward P/E of 16.92.
One should further note that UPS currently holds a PEG ratio of 1.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Transportation - Air Freight and Cargo industry stood at 1.85 at the close of the market yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 217, placing it within the bottom 14% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. 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.