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United Parcel Service (UPS) Beats Stock Market Upswing: What Investors Need to Know
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In the latest market close, United Parcel Service (UPS - Free Report) reached $128.55, with a +1.24% movement compared to the previous day. This change outpaced the S&P 500's 1.01% gain on the day. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq increased by 1.13%.
Shares of the package delivery service have depreciated by 2.76% over the course of the past month, underperforming the Transportation sector's gain of 0.82% and the S&P 500's gain of 2.5%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. On that day, United Parcel Service is projected to report earnings of $1.63 per share, which would represent year-over-year growth of 3.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.22 billion, up 5.52% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.43 per share and revenue of $92.04 billion, which would represent changes of -15.38% and +1.19%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.75% decrease. As of now, United Parcel Service holds a Zacks Rank of #4 (Sell).
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 17.1. This valuation marks a discount compared to its industry's average Forward P/E of 17.41.
It's also important to note that UPS currently trades at a PEG ratio of 1.87. 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. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.48 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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) Beats Stock Market Upswing: What Investors Need to Know
In the latest market close, United Parcel Service (UPS - Free Report) reached $128.55, with a +1.24% movement compared to the previous day. This change outpaced the S&P 500's 1.01% gain on the day. On the other hand, the Dow registered a gain of 0.55%, and the technology-centric Nasdaq increased by 1.13%.
Shares of the package delivery service have depreciated by 2.76% over the course of the past month, underperforming the Transportation sector's gain of 0.82% and the S&P 500's gain of 2.5%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. On that day, United Parcel Service is projected to report earnings of $1.63 per share, which would represent year-over-year growth of 3.82%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.22 billion, up 5.52% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.43 per share and revenue of $92.04 billion, which would represent changes of -15.38% and +1.19%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.75% decrease. As of now, United Parcel Service holds a Zacks Rank of #4 (Sell).
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 17.1. This valuation marks a discount compared to its industry's average Forward P/E of 17.41.
It's also important to note that UPS currently trades at a PEG ratio of 1.87. 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. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.48 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.