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United Parcel Service (UPS) closed at $127.32 in the latest trading session, marking a -0.96% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.39%. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw a decrease of 0.32%.
Shares of the package delivery service witnessed a loss of 4.87% over the previous month, trailing the performance of the Transportation sector with its loss of 2.85% and the S&P 500's gain of 3.6%.
The upcoming earnings release of United Parcel Service will be of great interest to investors. The company is forecasted to report an EPS of $2.50, showcasing a 1.21% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $25.19 billion, reflecting a 1.09% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.48 per share and a revenue of $90.96 billion, representing changes of -14.81% and 0%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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 past month, the Zacks Consensus EPS estimate has remained steady. United Parcel Service is currently a Zacks Rank #3 (Hold).
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 17.19. This represents a discount compared to its industry's average Forward P/E of 17.22.
Also, we should mention that UPS has a PEG ratio of 2.11. 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 1.44 at yesterday's closing price.