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

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United Parcel Service (UPS - Free Report) closed at $219.78 in the latest trading session, marking a -1.14% move from the prior day. This change lagged the S&P 500's 1.17% gain on the day. Meanwhile, the Dow gained 0.8%, and the Nasdaq, a tech-heavy index, added 0.18%.

Heading into today, shares of the package delivery service had gained 5.51% over the past month, outpacing the Transportation sector's gain of 2.14% and the S&P 500's gain of 0.88% in that time.

United Parcel Service will be looking to display strength as it nears its next earnings release, which is expected to be April 26, 2022. The company is expected to report EPS of $2.87, up 3.61% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $23.79 billion, up 3.85% 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 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.

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 has moved 0.68% higher within the past month. United Parcel Service currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 17.36. This valuation marks a premium compared to its industry's average Forward P/E of 16.29.

We can also see that UPS currently has a PEG ratio of 1.44. 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 1.44 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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