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United Parcel Service (UPS) Rises As Market Takes a Dip: Key Facts

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The latest trading session saw United Parcel Service (UPS - Free Report) ending at $136.87, denoting a +1.99% adjustment from its last day's close. The stock's change was more than the S&P 500's daily loss of 0.25%. Elsewhere, the Dow saw an upswing of 0.77%, while the tech-heavy Nasdaq depreciated by 0.79%.

The package delivery service's stock has dropped by 6.66% in the past month, falling short of the Transportation sector's loss of 4.81% and the S&P 500's gain of 3.59%.

The upcoming earnings release of United Parcel Service will be of great interest to investors. The company is predicted to post an EPS of $2, indicating a 21.26% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $22.37 billion, up 1.42% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.22 per share and revenue of $93.05 billion, which would represent changes of -6.38% and +2.3%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for United Parcel Service. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, United Parcel Service is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, United Parcel Service currently has a Forward P/E ratio of 16.32. This expresses a discount compared to the average Forward P/E of 16.66 of its industry.

One should further note that UPS currently holds a PEG ratio of 1.7. 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. UPS's industry had an average PEG ratio of 1.42 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 97, which puts it in the top 39% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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