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United Parcel Service (UPS) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $158.99, marking a -0.69% move from the previous day. This move lagged the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq gained 0.09%.
Prior to today's trading, shares of the package delivery service had lost 7.02% over the past month. This has lagged the Transportation sector's gain of 0.71% and the S&P 500's gain of 4.43% in that time.
UPS will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2021. On that day, UPS is projected to report earnings of $2.10 per share, which would represent a year-over-year decline of 0.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.78 billion, up 10.77% from the year-ago period.
Any recent changes to analyst estimates for UPS should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.38% higher. UPS is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that UPS has a Forward P/E ratio of 19.14 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.21.
It is also worth noting that UPS currently has a PEG ratio of 2.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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United Parcel Service (UPS) Dips More Than Broader Markets: What You Should Know
In the latest trading session, United Parcel Service (UPS - Free Report) closed at $158.99, marking a -0.69% move from the previous day. This move lagged the S&P 500's daily loss of 0.3%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq gained 0.09%.
Prior to today's trading, shares of the package delivery service had lost 7.02% over the past month. This has lagged the Transportation sector's gain of 0.71% and the S&P 500's gain of 4.43% in that time.
UPS will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2021. On that day, UPS is projected to report earnings of $2.10 per share, which would represent a year-over-year decline of 0.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.78 billion, up 10.77% from the year-ago period.
Any recent changes to analyst estimates for UPS should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.38% higher. UPS is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that UPS has a Forward P/E ratio of 19.14 right now. This valuation marks a premium compared to its industry's average Forward P/E of 15.21.
It is also worth noting that UPS currently has a PEG ratio of 2.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 20, putting it in the top 8% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.