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In the latest trading session, United Parcel Service (UPS) closed at $132.55, marking a -0.24% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.28%.
Shares of the package delivery service have appreciated by 5.24% over the course of the past month, outperforming the Transportation sector's gain of 4.09% and the S&P 500's gain of 2.08%.
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 January 30, 2025. In that report, analysts expect United Parcel Service to post earnings of $2.52 per share. This would mark year-over-year growth of 2.02%. Meanwhile, the latest consensus estimate predicts the revenue to be $25.34 billion, indicating a 1.7% increase compared to the same quarter of the previous year.
It is also important to note the recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.16% higher. Currently, United Parcel Service is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that United Parcel Service has a Forward P/E ratio of 15.2 right now. This signifies a premium in comparison to the average Forward P/E of 14.99 for its industry.
Meanwhile, UPS's PEG ratio is currently 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 1.23 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 221, this industry ranks in the bottom 12% of all industries, numbering over 250.