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Here's Why United Parcel Service (UPS) Fell More Than Broader Market

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In the latest trading session, United Parcel Service (UPS - Free Report) closed at $87.08, marking a -1.11% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.53%. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.93%.

Prior to today's trading, shares of the package delivery service had gained 4.32% outpaced the Transportation sector's gain of 1.25% and the S&P 500's gain of 1.13%.

Analysts and investors alike will be keeping a close eye on the performance of United Parcel Service in its upcoming earnings disclosure. The company's earnings report is set to go public on October 28, 2025. It is anticipated that the company will report an EPS of $1.31, marking a 25.57% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $20.84 billion, showing a 6.33% drop compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $6.46 per share and a revenue of $87.44 billion, demonstrating changes of -16.32% and -3.99%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for United Parcel Service. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.61% lower. At present, United Parcel Service boasts a Zacks Rank of #4 (Sell).

In terms of valuation, United Parcel Service is currently trading at a Forward P/E ratio of 13.63. This denotes no noticeable deviation relative to the industry average Forward P/E of 13.63.

It is also worth noting that UPS currently has a PEG ratio of 1.63. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.63 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 231, placing it within the bottom 7% of over 250 industries.

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.

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


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