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United Parcel Service (UPS) Gains But Lags Market: What You Should Know
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United Parcel Service (UPS - Free Report) closed the latest trading day at $161.62, indicating a +0.03% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.66%.
Shares of the package delivery service witnessed a gain of 8.02% over the previous month, trailing the performance of the Transportation sector with its gain of 8.79% and outperforming the S&P 500's gain of 5.16%.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company is slated to reveal its earnings on January 30, 2024. The company is forecasted to report an EPS of $2.47, showcasing a 31.77% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $25.41 billion, indicating a 5.99% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.80 per share and revenue of $91.45 billion, which would represent changes of -31.99% and -8.85%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for United Parcel Service. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 0.19% downward. United Parcel Service currently has a Zacks Rank of #3 (Hold).
With respect to valuation, United Parcel Service is currently being traded at a Forward P/E ratio of 18.37. Its industry sports an average Forward P/E of 16.94, so one might conclude that United Parcel Service is trading at a premium comparatively.
Also, we should mention that UPS has a PEG ratio of 1.84. 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 1.84 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 222, this industry ranks in the bottom 12% of all industries, numbering over 250.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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United Parcel Service (UPS) Gains But Lags Market: What You Should Know
United Parcel Service (UPS - Free Report) closed the latest trading day at $161.62, indicating a +0.03% change from the previous session's end. The stock's performance was behind the S&P 500's daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.66%.
Shares of the package delivery service witnessed a gain of 8.02% over the previous month, trailing the performance of the Transportation sector with its gain of 8.79% and outperforming the S&P 500's gain of 5.16%.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company is slated to reveal its earnings on January 30, 2024. The company is forecasted to report an EPS of $2.47, showcasing a 31.77% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $25.41 billion, indicating a 5.99% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.80 per share and revenue of $91.45 billion, which would represent changes of -31.99% and -8.85%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for United Parcel Service. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 0.19% downward. United Parcel Service currently has a Zacks Rank of #3 (Hold).
With respect to valuation, United Parcel Service is currently being traded at a Forward P/E ratio of 18.37. Its industry sports an average Forward P/E of 16.94, so one might conclude that United Parcel Service is trading at a premium comparatively.
Also, we should mention that UPS has a PEG ratio of 1.84. 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 1.84 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 222, this industry ranks in the bottom 12% of all industries, numbering over 250.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.