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The most recent trading session ended with United Parcel Service (UPS) standing at $124.98, reflecting a +0.62% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. On the other hand, the Dow registered a loss of 0.42%, and the technology-centric Nasdaq decreased by 1.89%.
Prior to today's trading, shares of the package delivery service had lost 3.36% over the past month. This has was narrower than the Transportation sector's loss of 6% and lagged the S&P 500's loss of 1.7% in that time.
The upcoming earnings release of United Parcel Service will be of great interest to investors. The company's earnings per share (EPS) are projected to be $2.50, reflecting a 1.21% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $25.23 billion, showing a 1.28% escalation compared to the year-ago quarter.
It is also important to note the recent changes to analyst estimates for United Parcel Service. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has moved 0.25% lower. United Parcel Service currently has a Zacks Rank of #4 (Sell).
In the context of valuation, United Parcel Service is at present trading with a Forward P/E ratio of 14.23. This expresses a premium compared to the average Forward P/E of 14.21 of its industry.
Also, we should mention that UPS has a PEG ratio of 1.75. 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 currently had an average PEG ratio of 1.14 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 217, positioning it in the bottom 14% of all 250+ industries.