Back to top

Image: Bigstock

United Parcel Service (UPS) Dips More Than Broader Markets: What You Should Know

Read MoreHide Full Article

United Parcel Service (UPS - Free Report) closed at $180.23 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's 0.75% loss on the day. Meanwhile, the Dow lost 0.54%, and the Nasdaq, a tech-heavy index, added 0.24%.

Heading into today, shares of the package delivery service had gained 2.32% over the past month, outpacing the Transportation sector's loss of 0.59% and the S&P 500's gain of 0.32% in that time.

Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release. The company is expected to report EPS of $3.15, up 2.94% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $24.66 billion, up 5.26% from the prior-year quarter.

UPS's full-year Zacks Consensus Estimates are calling for earnings of $12.83 per share and revenue of $102.29 billion. These results would represent year-over-year changes of +5.77% and +5.15%, respectively.

Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. These revisions help to show the ever-changing nature of near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 14.21. Its industry sports an average Forward P/E of 14.21, so we one might conclude that United Parcel Service is trading at a no noticeable deviation comparatively.

Also, we should mention that UPS has a PEG ratio of 1.59. 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 1.59 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


United Parcel Service, Inc. (UPS) - free report >>

Published in