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

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United Parcel Service (UPS - Free Report) ended the recent trading session at $138.24, demonstrating a +1.91% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.88%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 1.95%.

The the stock of package delivery service has fallen by 0.57% in the past month, leading the Transportation sector's loss of 2.02% and undershooting the S&P 500's gain of 5.11%.

The investment community will be closely monitoring the performance of United Parcel Service in its forthcoming earnings report. The company is scheduled to release its earnings on July 23, 2024. In that report, analysts expect United Parcel Service to post earnings of $1.99 per share. This would mark a year-over-year decline of 21.65%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.37 billion, up 1.42% from the year-ago period.

UPS's full-year Zacks Consensus Estimates are calling for earnings of $8.22 per share and revenue of $93.01 billion. These results would represent year-over-year changes of -6.38% and +2.26%, respectively.

It is also important to note the recent changes to analyst estimates 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. United Parcel Service currently has a Zacks Rank of #4 (Sell).

In terms of valuation, United Parcel Service is presently being traded at a Forward P/E ratio of 16.51. This denotes a discount relative to the industry's average Forward P/E of 17.03.

It is also worth noting that UPS currently has a PEG ratio of 1.72. 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 Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.46 as trading concluded yesterday.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 240, which puts it in the bottom 5% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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