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United Parcel Service (UPS) Stock Moves -0.34%: What You Should Know

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United Parcel Service (UPS - Free Report) closed the most recent trading day at $189.39, moving -0.34% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.7%.

Prior to today's trading, shares of the package delivery service had lost 1.66% over the past month. This has was narrower than the Transportation sector's loss of 1.77% and lagged the S&P 500's loss of 0.27% in that time.

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.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.16 per share and revenue of $94.69 billion, which would represent changes of +35.6% and +11.89%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate remained stagnant within the past month. UPS is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, UPS currently has a Forward P/E ratio of 17.02. For comparison, its industry has an average Forward P/E of 15.83, which means UPS is trading at a premium to the group.

It is also worth noting that UPS currently has a PEG ratio of 1.46. 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 1.46 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 88, which puts it in the top 35% 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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