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United Parcel Service (UPS) Flat As Market Gains: What You Should Know

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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $203.20, marking no change from the previous day. This change lagged the S&P 500's 0.2% gain on the day.

Coming into today, shares of the package delivery service had lost 5.78% in the past month. In that same time, the Transportation sector lost 2.84%, while the S&P 500 gained 1.06%.

Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. On that day, UPS is projected to report earnings of $2.70 per share, which would represent year-over-year growth of 26.76%. Meanwhile, our latest consensus estimate is calling for revenue of $22.34 billion, up 9.18% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.72 per share and revenue of $90.8 billion. These totals would mark changes of +30.26% and +7.3%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for UPS. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.77% higher within the past month. UPS currently has a Zacks Rank of #2 (Buy).

In terms of valuation, UPS is currently trading at a Forward P/E ratio of 18.95. This valuation marks a premium compared to its industry's average Forward P/E of 14.59.

Also, we should mention that UPS has a PEG ratio of 1.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.43 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 9, which puts it in the top 4% 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.

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