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United Parcel Service (UPS) Stock Moves -0.86%: What You Should Know

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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $153.75, marking a -0.86% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.37%. Elsewhere, the Dow lost 1.29%, while the tech-heavy Nasdaq lost 1.87%.

Prior to today's trading, shares of the package delivery service had lost 7.69% over the past month. This has lagged the Transportation sector's loss of 6.67% and the S&P 500's loss of 4.93% 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 October 26, 2023. On that day, United Parcel Service is projected to report earnings of $1.80 per share, which would represent a year-over-year decline of 39.8%. Our most recent consensus estimate is calling for quarterly revenue of $21.89 billion, down 9.41% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.37 per share and revenue of $92.73 billion, which would represent changes of -27.59% and -7.59%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 2.38% lower. United Parcel Service is holding a Zacks Rank of #5 (Strong Sell) right now.

In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 16.55. This valuation marks a premium compared to its industry's average Forward P/E of 15.65.

Also, we should mention that UPS has a PEG ratio of 1.65. 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. UPS's industry had an average PEG ratio of 1.65 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 107, putting it in the top 43% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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