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

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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $190.26, marking a +0.89% move from the previous day. This change outpaced the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.3%, and the Nasdaq, a tech-heavy index, lost 2.19%.

Coming into today, shares of the package delivery service had gained 3.88% in the past month. In that same time, the Transportation sector lost 3.15%, while the S&P 500 gained 3.13%.

United Parcel Service will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2023. On that day, United Parcel Service is projected to report earnings of $2.35 per share, which would represent a year-over-year decline of 22.95%. Our most recent consensus estimate is calling for quarterly revenue of $22.97 billion, down 5.78% from the year-ago period.

UPS's full-year Zacks Consensus Estimates are calling for earnings of $11.49 per share and revenue of $97.67 billion. These results would represent year-over-year changes of -11.21% and -2.66%, respectively.

Investors should also note any 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.

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.

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 0.33% lower 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 16.41. This represents a premium compared to its industry's average Forward P/E of 16.13.

Also, we should mention that UPS has a PEG ratio of 2.26. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 190, which puts it in the bottom 25% 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.


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