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

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United Parcel Service (UPS - Free Report) closed the most recent trading day at $207.18, moving +0.19% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 0.62%.

Coming into today, shares of the package delivery service had lost 8.13% in the past month. In that same time, the Transportation sector lost 5.38%, while the S&P 500 lost 6.57%.

United Parcel Service will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2022. In that report, analysts expect United Parcel Service to post earnings of $2.87 per share. This would mark year-over-year growth of 3.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.81 billion, up 3.95% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.81 per share and revenue of $101.92 billion. These totals would mark changes of +5.61% and +4.76%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.68% higher. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 16.15. This valuation marks a premium compared to its industry's average Forward P/E of 15.75.

It is also worth noting that UPS currently has a PEG ratio of 1.34. 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. UPS's industry had an average PEG ratio of 1.34 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 81, which puts it in the top 32% 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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