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United Parcel Service (UPS) Gains As Market Dips: What You Should Know
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United Parcel Service (UPS - Free Report) closed the most recent trading day at $118.54, moving +0.34% from the previous trading session. This change outpaced the S&P 500's 0.11% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Prior to today's trading, shares of the package delivery service had lost 4.06% over the past month. This has lagged the Transportation sector's loss of 2.82% and the S&P 500's gain of 1.62% in that time.
UPS will be looking to display strength as it nears its next earnings release. In that report, analysts expect UPS to post earnings of $2.10 per share. This would mark year-over-year growth of 8.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.51 billion, up 3.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.51 per share and revenue of $74.07 billion, which would represent changes of +3.73% and +3.08%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. UPS currently has a Zacks Rank of #3 (Hold).
Investors should also note UPS's current valuation metrics, including its Forward P/E ratio of 15.72. Its industry sports an average Forward P/E of 12.94, so we one might conclude that UPS is trading at a premium comparatively.
We can also see that UPS currently has a PEG ratio of 1.8. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.44 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 209, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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United Parcel Service (UPS) Gains As Market Dips: What You Should Know
United Parcel Service (UPS - Free Report) closed the most recent trading day at $118.54, moving +0.34% from the previous trading session. This change outpaced the S&P 500's 0.11% loss on the day. Meanwhile, the Dow lost 0.1%, and the Nasdaq, a tech-heavy index, lost 0.07%.
Prior to today's trading, shares of the package delivery service had lost 4.06% over the past month. This has lagged the Transportation sector's loss of 2.82% and the S&P 500's gain of 1.62% in that time.
UPS will be looking to display strength as it nears its next earnings release. In that report, analysts expect UPS to post earnings of $2.10 per share. This would mark year-over-year growth of 8.25%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.51 billion, up 3.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.51 per share and revenue of $74.07 billion, which would represent changes of +3.73% and +3.08%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. UPS currently has a Zacks Rank of #3 (Hold).
Investors should also note UPS's current valuation metrics, including its Forward P/E ratio of 15.72. Its industry sports an average Forward P/E of 12.94, so we one might conclude that UPS is trading at a premium comparatively.
We can also see that UPS currently has a PEG ratio of 1.8. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.44 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 209, putting it in the bottom 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.