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United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know
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United Parcel Service (UPS - Free Report) closed at $174.88 in the latest trading session, marking a +1.15% move from the prior day. This change outpaced the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Prior to today's trading, shares of the package delivery service had gained 3.77% over the past month. This has outpaced the Transportation sector's gain of 2.95% and lagged the S&P 500's gain of 6.1% in that time.
Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release. In that report, analysts expect United Parcel Service to post earnings of $2.54 per share. This would mark a year-over-year decline of 22.8%. Meanwhile, our latest consensus estimate is calling for revenue of $22.95 billion, down 7.35% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.78 per share and revenue of $96.45 billion, which would represent changes of -16.69% and -3.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for United Parcel Service. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 16.04. This represents a premium compared to its industry's average Forward P/E of 14.28.
Also, we should mention that UPS has a PEG ratio of 1.6. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know
United Parcel Service (UPS - Free Report) closed at $174.88 in the latest trading session, marking a +1.15% move from the prior day. This change outpaced the S&P 500's 0.08% gain on the day. Meanwhile, the Dow lost 0.68%, and the Nasdaq, a tech-heavy index, lost 0.61%.
Prior to today's trading, shares of the package delivery service had gained 3.77% over the past month. This has outpaced the Transportation sector's gain of 2.95% and lagged the S&P 500's gain of 6.1% in that time.
Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release. In that report, analysts expect United Parcel Service to post earnings of $2.54 per share. This would mark a year-over-year decline of 22.8%. Meanwhile, our latest consensus estimate is calling for revenue of $22.95 billion, down 7.35% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.78 per share and revenue of $96.45 billion, which would represent changes of -16.69% and -3.87%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for United Parcel Service. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 16.04. This represents a premium compared to its industry's average Forward P/E of 14.28.
Also, we should mention that UPS has a PEG ratio of 1.6. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.6 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.