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United Parcel Service (UPS) Gains But Lags Market: What You Should Know
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United Parcel Service (UPS - Free Report) closed at $186.49 in the latest trading session, marking a +0.67% move from the prior day. This move lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Heading into today, shares of the package delivery service had gained 7.14% over the past month, lagging the Transportation sector's gain of 7.83% and outpacing the S&P 500's gain of 3.34% in that time.
Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release, which is expected to be August 8, 2023. In that report, analysts expect United Parcel Service to post earnings of $2.51 per share. This would mark a year-over-year decline of 23.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.91 billion, down 7.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.73 per share and revenue of $96.36 billion, which would represent changes of -17.08% and -3.97%, respectively, from the prior year.
Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 0.43% lower within the past month. United Parcel Service currently has a Zacks Rank of #3 (Hold).
Digging into valuation, United Parcel Service currently has a Forward P/E ratio of 17.26. This represents a premium compared to its industry's average Forward P/E of 16.1.
Also, we should mention that UPS has a PEG ratio of 1.73. 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 1.73 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 205, which puts it in the bottom 19% 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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United Parcel Service (UPS) Gains But Lags Market: What You Should Know
United Parcel Service (UPS - Free Report) closed at $186.49 in the latest trading session, marking a +0.67% move from the prior day. This move lagged the S&P 500's daily gain of 0.74%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 11.47%.
Heading into today, shares of the package delivery service had gained 7.14% over the past month, lagging the Transportation sector's gain of 7.83% and outpacing the S&P 500's gain of 3.34% in that time.
Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release, which is expected to be August 8, 2023. In that report, analysts expect United Parcel Service to post earnings of $2.51 per share. This would mark a year-over-year decline of 23.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.91 billion, down 7.49% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.73 per share and revenue of $96.36 billion, which would represent changes of -17.08% and -3.97%, respectively, from the prior year.
Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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.
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 0.43% lower within the past month. United Parcel Service currently has a Zacks Rank of #3 (Hold).
Digging into valuation, United Parcel Service currently has a Forward P/E ratio of 17.26. This represents a premium compared to its industry's average Forward P/E of 16.1.
Also, we should mention that UPS has a PEG ratio of 1.73. 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 1.73 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 205, which puts it in the bottom 19% 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.