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United Parcel Service (UPS) Stock Sinks As Market Gains: What You Should Know

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In the latest market close, United Parcel Service (UPS - Free Report) reached $115.26, with a -0.95% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.49%. Elsewhere, the Dow lost 0.2%, while the tech-heavy Nasdaq added 1.22%.

The package delivery service's shares have seen an increase of 1.6% over the last month, surpassing the Transportation sector's loss of 9.55% and the S&P 500's loss of 8.15%.

The investment community will be closely monitoring the performance of United Parcel Service in its forthcoming earnings report. It is anticipated that the company will report an EPS of $1.52, marking a 6.29% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $21.35 billion, indicating a 1.64% downward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.83 per share and a revenue of $88.39 billion, representing changes of +1.42% and -2.94%, respectively, from the prior year.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 1.93% lower within the past month. As of now, United Parcel Service holds a Zacks Rank of #4 (Sell).

With respect to valuation, United Parcel Service is currently being traded at a Forward P/E ratio of 14.86. For comparison, its industry has an average Forward P/E of 14.9, 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 1.57. 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. As of the close of trade yesterday, the Transportation - Air Freight and Cargo industry held an average PEG ratio of 1.24.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 225, placing it within the bottom 11% of over 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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