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United Parcel Service (UPS) Outperforms Broader Market: What You Need to Know

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United Parcel Service (UPS - Free Report) closed at $105.54 in the latest trading session, marking a +1.02% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.48%. Elsewhere, the Dow saw a downswing of 0.02%, while the tech-heavy Nasdaq appreciated by 0.94%.

Heading into today, shares of the package delivery service had gained 6.52% over the past month, outpacing the Transportation sector's gain of 4.03% and the S&P 500's gain of 5.13%.

The upcoming earnings release of United Parcel Service will be of great interest to investors. It is anticipated that the company will report an EPS of $1.57, marking a 12.29% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $20.82 billion, indicating a 4.59% decline compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.05 per share and a revenue of $87.21 billion, indicating changes of -8.68% and -4.24%, respectively, from the former year.

Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.43% lower within the past month. As of now, United Parcel Service holds a Zacks Rank of #4 (Sell).

Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 14.81. This signifies no noticeable deviation in comparison to the average Forward P/E of 14.81 for its industry.

Investors should also note that UPS has a PEG ratio of 1.84 right now. 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. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.84 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 198, this industry ranks in the bottom 20% of all industries, numbering over 250.

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.

To follow UPS in the coming trading sessions, be sure to utilize Zacks.com.


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