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United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $194.39, marking a +0.58% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.23%.

Coming into today, shares of the package delivery service had lost 0.37% in the past month. In that same time, the Transportation sector lost 0.48%, while the S&P 500 gained 0.65%.

Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. In that report, analysts expect UPS to post earnings of $2.53 per share. This would mark year-over-year growth of 10.96%. Our most recent consensus estimate is calling for quarterly revenue of $22.71 billion, up 6.93% from the year-ago period.

UPS's full-year Zacks Consensus Estimates are calling for earnings of $11.16 per share and revenue of $94.69 billion. These results would represent year-over-year changes of +35.6% and +11.89%, respectively.

Investors should also note any 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. UPS currently has a Zacks Rank of #3 (Hold).

In terms of valuation, UPS is currently trading at a Forward P/E ratio of 17.31. Its industry sports an average Forward P/E of 16.51, so we one might conclude that UPS is trading at a premium comparatively.

Meanwhile, UPS's PEG ratio is currently 1.49. 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. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.49 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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