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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 at $178.96 in the latest trading session, marking a +0.82% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%.
Coming into today, shares of the package delivery service had gained 8.74% in the past month. In that same time, the Transportation sector gained 0.83%, while the S&P 500 gained 5.05%.
UPS will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2021. In that report, analysts expect UPS to post earnings of $1.63 per share. This would mark year-over-year growth of 41.74%. Our most recent consensus estimate is calling for quarterly revenue of $20.38 billion, up 13% from the year-ago period.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $8.83 per share and revenue of $86.12 billion. These results would represent year-over-year changes of +7.29% and +1.76%, respectively.
It is also important to note the recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. UPS is currently a Zacks Rank #3 (Hold).
Looking at its valuation, UPS is holding a Forward P/E ratio of 20.09. Its industry sports an average Forward P/E of 16.25, so we one might conclude that UPS is trading at a premium comparatively.
Also, we should mention that UPS has a PEG ratio of 2.3. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% 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) Gains But Lags Market: What You Should Know
United Parcel Service (UPS - Free Report) closed at $178.96 in the latest trading session, marking a +0.82% move from the prior day. This move lagged the S&P 500's daily gain of 1.09%.
Coming into today, shares of the package delivery service had gained 8.74% in the past month. In that same time, the Transportation sector gained 0.83%, while the S&P 500 gained 5.05%.
UPS will be looking to display strength as it nears its next earnings release, which is expected to be April 27, 2021. In that report, analysts expect UPS to post earnings of $1.63 per share. This would mark year-over-year growth of 41.74%. Our most recent consensus estimate is calling for quarterly revenue of $20.38 billion, up 13% from the year-ago period.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $8.83 per share and revenue of $86.12 billion. These results would represent year-over-year changes of +7.29% and +1.76%, respectively.
It is also important to note the recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.28% higher. UPS is currently a Zacks Rank #3 (Hold).
Looking at its valuation, UPS is holding a Forward P/E ratio of 20.09. Its industry sports an average Forward P/E of 16.25, so we one might conclude that UPS is trading at a premium comparatively.
Also, we should mention that UPS has a PEG ratio of 2.3. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 115, which puts it in the top 46% 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.