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United Parcel Service (UPS) Advances While Market Declines: Some Information for Investors

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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $159.94, marking a +0.01% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.15%. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw an increase of 0.09%.

The package delivery service's stock has climbed by 2.66% in the past month, falling short of the Transportation sector's gain of 2.9% and the S&P 500's gain of 3.5%.

The upcoming earnings release of United Parcel Service will be of great interest to investors. The company's earnings report is expected on January 30, 2024. In that report, analysts expect United Parcel Service to post earnings of $2.45 per share. This would mark a year-over-year decline of 32.32%. Simultaneously, our latest consensus estimate expects the revenue to be $25.37 billion, showing a 6.14% drop compared to the year-ago quarter.

Investors should also take note of any recent adjustments to analyst estimates for United Parcel Service. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.66% downward. Right now, United Parcel Service possesses a Zacks Rank of #4 (Sell).

Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 17.05. This expresses a premium compared to the average Forward P/E of 15.57 of its industry.

Meanwhile, UPS's PEG ratio is currently 1.71. 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 1.71 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 240, putting it in the bottom 5% 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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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