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UPS (UPS) Surges 10.4%: Is This an Indication of Further Gains?
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United Parcel Service (UPS - Free Report) shares ended the last trading session 10.4% higher at $194.13. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.6% gain over the past four weeks.
The upside was due to the highly impressive results posted by UPS in first-quarter 2021. The company’s earnings (excluding $2.70 from non-recurring items) per share of $2.77 surpassed the Zacks Consensus Estimate of $1.67. The bottom line also surged in excess of 100% year over year. Results were aided by an expanded volume of deliveries with the coronavirus pandemic continuing to confine people to their homes.
Driven by inflated volumes, quarterly revenues at UPS climbed 27% year over year to $22,908 million, surpassing the Zacks Consensus Estimate of $20,379.7 million. Notably, consolidated average daily volumes jumped 14.3% year over year. Also, overall operating profit skyrocketed more than 100% on an adjusted basis in the first quarter, boosted by double-digit growth in adjusted operating profit across all segments.
Price and Consensus
This package delivery service is expected to post quarterly earnings of $1.67 per share in its upcoming report, which represents a year-over-year change of +45.2%. Revenues are expected to be $20.38 billion, up 13% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For UPS, the consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on UPS going forward to see if this recent jump can turn into more strength down the road.
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UPS (UPS) Surges 10.4%: Is This an Indication of Further Gains?
United Parcel Service (UPS - Free Report) shares ended the last trading session 10.4% higher at $194.13. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.6% gain over the past four weeks.
The upside was due to the highly impressive results posted by UPS in first-quarter 2021. The company’s earnings (excluding $2.70 from non-recurring items) per share of $2.77 surpassed the Zacks Consensus Estimate of $1.67. The bottom line also surged in excess of 100% year over year. Results were aided by an expanded volume of deliveries with the coronavirus pandemic continuing to confine people to their homes.
Driven by inflated volumes, quarterly revenues at UPS climbed 27% year over year to $22,908 million, surpassing the Zacks Consensus Estimate of $20,379.7 million. Notably, consolidated average daily volumes jumped 14.3% year over year. Also, overall operating profit skyrocketed more than 100% on an adjusted basis in the first quarter, boosted by double-digit growth in adjusted operating profit across all segments.
Price and Consensus
This package delivery service is expected to post quarterly earnings of $1.67 per share in its upcoming report, which represents a year-over-year change of +45.2%. Revenues are expected to be $20.38 billion, up 13% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For UPS, the consensus EPS estimate for the quarter has been revised 1.4% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on UPS going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>