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United Parcel Service (UPS) Stock Moves -0.04%: What You Should Know

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In the latest market close, United Parcel Service (UPS - Free Report) reached $144.85, with a -0.04% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 1.2% for the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq lost 1.79%.

Shares of the package delivery service witnessed a loss of 5.52% over the previous month, trailing the performance of the Transportation sector with its gain of 4.62% and the S&P 500's loss of 0.85%.

The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company is slated to reveal its earnings on April 23, 2024. It is anticipated that the company will report an EPS of $1.33, marking a 39.55% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $21.96 billion, down 4.21% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.21 per share and a revenue of $93.36 billion, indicating changes of -6.49% and +2.64%, respectively, from the former 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.25% lower. At present, United Parcel Service boasts a Zacks Rank of #3 (Hold).

In terms of valuation, United Parcel Service is presently being traded at a Forward P/E ratio of 17.65. This represents a premium compared to its industry's average Forward P/E of 17.57.

Meanwhile, UPS's PEG ratio is currently 1.68. 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 1.68.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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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