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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 $152.41, marking a +0.34% move from the previous day. This change outpaced the S&P 500's 0.02% gain on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.22%.
Prior to today's trading, shares of the package delivery service had lost 11.56% over the past month. This has lagged the Transportation sector's loss of 4.78% and the S&P 500's loss of 2.86% 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 October 26, 2023. In that report, analysts expect United Parcel Service to post earnings of $1.89 per share. This would mark a year-over-year decline of 36.79%. Meanwhile, our latest consensus estimate is calling for revenue of $21.98 billion, down 9.01% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.46 per share and revenue of $92.78 billion. These totals would mark changes of -26.89% and -7.54%, respectively, from last year.
Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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. Within the past 30 days, our consensus EPS projection has moved 2.52% lower. United Parcel Service is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 16.06. This valuation marks a premium compared to its industry's average Forward P/E of 15.3.
We can also see that UPS currently has a PEG ratio of 1.61. 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 1.61 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 55, putting it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, United Parcel Service (UPS - Free Report) closed at $152.41, marking a +0.34% move from the previous day. This change outpaced the S&P 500's 0.02% gain on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, added 0.22%.
Prior to today's trading, shares of the package delivery service had lost 11.56% over the past month. This has lagged the Transportation sector's loss of 4.78% and the S&P 500's loss of 2.86% 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 October 26, 2023. In that report, analysts expect United Parcel Service to post earnings of $1.89 per share. This would mark a year-over-year decline of 36.79%. Meanwhile, our latest consensus estimate is calling for revenue of $21.98 billion, down 9.01% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.46 per share and revenue of $92.78 billion. These totals would mark changes of -26.89% and -7.54%, respectively, from last year.
Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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, 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. Within the past 30 days, our consensus EPS projection has moved 2.52% lower. United Parcel Service is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 16.06. This valuation marks a premium compared to its industry's average Forward P/E of 15.3.
We can also see that UPS currently has a PEG ratio of 1.61. 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 1.61 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 55, putting it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.