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United Parcel Service (UPS) Exceeds Market Returns: Some Facts to Consider

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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $150.57, marking a +0.31% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.15%. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, added 0.32%.

Shares of the package delivery service witnessed a loss of 3% over the previous month, trailing the performance of the Transportation sector with its loss of 0.64% and the S&P 500's gain of 1.65%.

The upcoming earnings release of United Parcel Service will be of great interest to investors. The company's earnings report is expected on April 23, 2024. On that day, United Parcel Service is projected to report earnings of $1.35 per share, which would represent a year-over-year decline of 38.64%. Simultaneously, our latest consensus estimate expects the revenue to be $21.96 billion, showing a 4.21% drop compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.24 per share and a revenue of $93.39 billion, signifying shifts of -6.15% and +2.68%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for United Parcel Service. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.82% decrease. United Parcel Service is currently a Zacks Rank #3 (Hold).

Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 18.21. This represents a premium compared to its industry's average Forward P/E of 17.92.

Meanwhile, UPS's PEG ratio is currently 1.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.74 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 193, finds itself in the bottom 24% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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