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United Parcel Service (UPS) Rises As Market Takes a Dip: Key Facts

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The latest trading session saw United Parcel Service (UPS - Free Report) ending at $155.29, denoting a +0.73% adjustment from its last day's close. This move outpaced the S&P 500's daily loss of 0.39%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.59%.

Shares of the package delivery service have appreciated by 8.68% over the course of the past month, outperforming the Transportation sector's gain of 7% and the S&P 500's gain of 5.08%.

The upcoming earnings release of United Parcel Service will be of great interest to investors. The company's upcoming EPS is projected at $2.49, signifying a 31.22% drop compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $25.41 billion, showing a 5.99% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $8.81 per share and revenue of $91.45 billion, which would represent changes of -31.92% and -8.85%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, there's been a 0.09% fall in the Zacks Consensus EPS estimate. Currently, United Parcel Service is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, United Parcel Service is currently being traded at a Forward P/E ratio of 17.49. This indicates a premium in contrast to its industry's Forward P/E of 16.06.

We can also see that UPS currently has a PEG ratio of 1.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Transportation - Air Freight and Cargo industry held an average PEG ratio of 1.75.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons 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.

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