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Why the Market Dipped But United Parcel Service (UPS) Gained Today

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The most recent trading session ended with United Parcel Service (UPS - Free Report) standing at $118.86, reflecting a +0.68% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily loss of 1.07%. On the other hand, the Dow registered a loss of 0.62%, and the technology-centric Nasdaq decreased by 1.71%.

The the stock of package delivery service has risen by 1.58% in the past month, leading the Transportation sector's loss of 7.7% and the S&P 500's loss of 7.03%.

The upcoming earnings release of United Parcel Service will be of great interest to investors. The company is forecasted to report an EPS of $1.50, showcasing a 4.9% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.29 billion, down 1.92% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.81 per share and revenue of $88.36 billion. These totals would mark changes of +1.17% and -2.98%, respectively, from last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.79% decrease. As of now, United Parcel Service holds a Zacks Rank of #4 (Sell).

Digging into valuation, United Parcel Service currently has a Forward P/E ratio of 15.11. This valuation marks a discount compared to its industry's average Forward P/E of 15.88.

Meanwhile, UPS's PEG ratio is currently 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. UPS's industry had an average PEG ratio of 1.39 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 16% 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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