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Here's Why United Parcel Service (UPS) Gained But Lagged the Market Today

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The latest trading session saw United Parcel Service (UPS - Free Report) ending at $128.74, denoting a +0.11% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.15%, while the tech-heavy Nasdaq appreciated by 0.15%.

Shares of the package delivery service witnessed a gain of 0.49% over the previous month, trailing the performance of the Transportation sector with its gain of 3.79% and the S&P 500's gain of 2%.

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 October 24, 2024. The company's earnings per share (EPS) are projected to be $1.63, reflecting a 3.82% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $22.22 billion, indicating a 5.52% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.43 per share and a revenue of $92.04 billion, representing changes of -15.38% and +1.19%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for United Parcel Service. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 0.62% lower. United Parcel Service is holding a Zacks Rank of #4 (Sell) right now.

With respect to valuation, United Parcel Service is currently being traded at a Forward P/E ratio of 17.32. For comparison, its industry has an average Forward P/E of 17.91, which means United Parcel Service is trading at a discount to the group.

We can additionally observe that UPS currently boasts a PEG ratio of 1.89. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Transportation - Air Freight and Cargo industry was having an average PEG ratio of 1.54.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 36% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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