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United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $184.57, marking a +1% move from the previous day. This change outpaced the S&P 500's 0.71% gain on the day. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq gained 4.62%.
Prior to today's trading, shares of the package delivery service had gained 2.33% over the past month. This has lagged the Transportation sector's gain of 3.43% and the S&P 500's gain of 2.65% in that time.
Wall Street will be looking for positivity from United Parcel Service as it approaches its next earnings report date. This is expected to be August 8, 2023. On that day, United Parcel Service is projected to report earnings of $2.51 per share, which would represent a year-over-year decline of 23.71%. Our most recent consensus estimate is calling for quarterly revenue of $22.88 billion, down 7.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.71 per share and revenue of $96.32 billion, which would represent changes of -17.23% and -4%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 0.63% lower. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 17.06. Its industry sports an average Forward P/E of 15.9, so we one might conclude that United Parcel Service is trading at a premium comparatively.
We can also see that UPS currently has a PEG ratio of 1.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 49% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, United Parcel Service (UPS - Free Report) closed at $184.57, marking a +1% move from the previous day. This change outpaced the S&P 500's 0.71% gain on the day. At the same time, the Dow added 1.06%, and the tech-heavy Nasdaq gained 4.62%.
Prior to today's trading, shares of the package delivery service had gained 2.33% over the past month. This has lagged the Transportation sector's gain of 3.43% and the S&P 500's gain of 2.65% in that time.
Wall Street will be looking for positivity from United Parcel Service as it approaches its next earnings report date. This is expected to be August 8, 2023. On that day, United Parcel Service is projected to report earnings of $2.51 per share, which would represent a year-over-year decline of 23.71%. Our most recent consensus estimate is calling for quarterly revenue of $22.88 billion, down 7.62% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.71 per share and revenue of $96.32 billion, which would represent changes of -17.23% and -4%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 moved 0.63% lower. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 17.06. Its industry sports an average Forward P/E of 15.9, so we one might conclude that United Parcel Service is trading at a premium comparatively.
We can also see that UPS currently has a PEG ratio of 1.71. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.71 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 49% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.