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United Parcel Service (UPS) Dips More Than Broader Markets: What You Should Know
United Parcel Service (UPS - Free Report) closed the most recent trading day at $183.27, moving -1.74% from the previous trading session. This change lagged the S&P 500's daily loss of 1.53%. Elsewhere, the Dow lost 1.72%, while the tech-heavy Nasdaq lost 3.27%.
Coming into today, shares of the package delivery service had lost 1.19% in the past month. In that same time, the Transportation sector lost 1.34%, while the S&P 500 lost 1.28%.
Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release. On that day, United Parcel Service is projected to report earnings of $2.25 per share, which would represent a year-over-year decline of 26.23%. Our most recent consensus estimate is calling for quarterly revenue of $22.96 billion, down 5.81% from the year-ago period.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $11.58 per share and revenue of $97.86 billion. These results would represent year-over-year changes of -10.51% and -2.47%, respectively.
Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. United Parcel Service is currently a Zacks Rank #3 (Hold).
Digging into valuation, United Parcel Service currently has a Forward P/E ratio of 16.11. This valuation marks a premium compared to its industry's average Forward P/E of 15.56.
It is also worth noting that UPS currently has a PEG ratio of 2.22. 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 1.75 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 234, which puts it in the bottom 8% 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.
To follow UPS in the coming trading sessions, be sure to utilize Zacks.com.