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Why United Parcel Service (UPS) Outpaced the Stock Market Today
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United Parcel Service (UPS - Free Report) closed the most recent trading day at $99.31, moving +1.08% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.09%.
Coming into today, shares of the package delivery service had gained 2.46% in the past month. In that same time, the Transportation sector gained 7.55%, while the S&P 500 gained 7.21%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. The company's earnings per share (EPS) are projected to be $1.57, reflecting a 12.29% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $20.84 billion, down 4.51% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.08 per share and revenue of $87.37 billion. These totals would mark changes of -8.29% and -4.06%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, the Zacks Consensus EPS estimate has shifted 1.78% downward. Right now, United Parcel Service possesses a Zacks Rank of #3 (Hold).
Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 13.87. Its industry sports an average Forward P/E of 13.87, so one might conclude that United Parcel Service is trading at no noticeable deviation comparatively.
Investors should also note that UPS has a PEG ratio of 1.72 right now. 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. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.72 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Why United Parcel Service (UPS) Outpaced the Stock Market Today
United Parcel Service (UPS - Free Report) closed the most recent trading day at $99.31, moving +1.08% from the previous trading session. The stock's change was more than the S&P 500's daily gain of 0.09%.
Coming into today, shares of the package delivery service had gained 2.46% in the past month. In that same time, the Transportation sector gained 7.55%, while the S&P 500 gained 7.21%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. The company's earnings per share (EPS) are projected to be $1.57, reflecting a 12.29% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $20.84 billion, down 4.51% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.08 per share and revenue of $87.37 billion. These totals would mark changes of -8.29% and -4.06%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, the Zacks Consensus EPS estimate has shifted 1.78% downward. Right now, United Parcel Service possesses a Zacks Rank of #3 (Hold).
Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 13.87. Its industry sports an average Forward P/E of 13.87, so one might conclude that United Parcel Service is trading at no noticeable deviation comparatively.
Investors should also note that UPS has a PEG ratio of 1.72 right now. 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. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.72 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.