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United Parcel Service (UPS) Stock Dips While Market Gains: Key Facts

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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $129.12, marking a -0.84% move from the previous day. This change lagged the S&P 500's 0.82% gain on the day. On the other hand, the Dow registered a loss of 0.22%, and the technology-centric Nasdaq increased by 1.77%.

Shares of the package delivery service have appreciated by 0.06% over the course of the past month, outperforming the Transportation sector's loss of 2.41% and lagging the S&P 500's gain of 0.8%.

Investors will be eagerly watching for the performance of United Parcel Service in its upcoming earnings disclosure. On that day, United Parcel Service is projected to report earnings of $2.50 per share, which would represent year-over-year growth of 1.21%. In the meantime, our current consensus estimate forecasts the revenue to be $25.19 billion, indicating a 1.09% growth compared to the corresponding quarter of the prior year.

UPS's full-year Zacks Consensus Estimates are calling for earnings of $7.48 per share and revenue of $90.96 billion. These results would represent year-over-year changes of -14.81% and 0%, respectively.

Investors should also note any recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business 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.

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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, United Parcel Service holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that United Parcel Service has a Forward P/E ratio of 17.41 right now. This indicates a discount in contrast to its industry's Forward P/E of 17.69.

Also, we should mention that UPS has a PEG ratio of 2.14. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.5 based on yesterday's closing prices.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 208, positioning it in the bottom 18% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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