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United Parcel Service (UPS) Laps the Stock Market: Here's Why
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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $159.71, marking a +2% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.53% for the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.19%.
Shares of the package delivery service witnessed a loss of 0.17% over the previous month, beating the performance of the Transportation sector with its loss of 3.36% and underperforming the S&P 500's gain of 2.48%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. The company plans to announce its earnings on January 30, 2024. The company's earnings per share (EPS) are projected to be $2.44, reflecting a 32.6% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $25.31 billion, showing a 6.39% drop compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for United Parcel Service. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 16.66. This represents a premium compared to its industry's average Forward P/E of 15.36.
Meanwhile, UPS's PEG ratio is currently 1.67. 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 1.67 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 244, putting it in the bottom 4% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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) Laps the Stock Market: Here's Why
In the latest trading session, United Parcel Service (UPS - Free Report) closed at $159.71, marking a +2% move from the previous day. The stock exceeded the S&P 500, which registered a gain of 0.53% for the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq added 0.19%.
Shares of the package delivery service witnessed a loss of 0.17% over the previous month, beating the performance of the Transportation sector with its loss of 3.36% and underperforming the S&P 500's gain of 2.48%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. The company plans to announce its earnings on January 30, 2024. The company's earnings per share (EPS) are projected to be $2.44, reflecting a 32.6% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $25.31 billion, showing a 6.39% drop compared to the year-ago quarter.
Investors should also pay attention to any latest changes in analyst estimates for United Parcel Service. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.21% higher within the past month. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 16.66. This represents a premium compared to its industry's average Forward P/E of 15.36.
Meanwhile, UPS's PEG ratio is currently 1.67. 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 1.67 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 244, putting it in the bottom 4% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.