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United Parcel Service (UPS) Gains But Lags Market: What You Should Know

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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $214.66, marking a +0.04% move from the previous day. The stock lagged the S&P 500's daily gain of 1.43%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq added 0.32%.

Prior to today's trading, shares of the package delivery service had gained 4.94% over the past month. This has lagged the Transportation sector's gain of 6.31% and the S&P 500's gain of 5.65% in that time.

Wall Street will be looking for positivity from United Parcel Service as it approaches its next earnings report date. This 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, our latest consensus estimate is calling for revenue of $23.79 billion, up 3.85% from the prior-year quarter.

UPS's full-year Zacks Consensus Estimates are calling for earnings of $12.81 per share and revenue of $101.92 billion. These results would represent year-over-year changes of +5.61% and +4.76%, respectively.

Investors might also notice recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. The Zacks Consensus EPS estimate has moved 0.68% higher within the past month. United Parcel Service is currently a Zacks Rank #3 (Hold).

Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 16.76. Its industry sports an average Forward P/E of 16.51, so we one might conclude that United Parcel Service is trading at a premium comparatively.

We can also see that UPS currently has a PEG ratio of 1.39. 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 1.39 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 85, putting it in the top 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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