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United Parcel Service (UPS) Beats Stock Market Upswing: What Investors Need to Know
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United Parcel Service (UPS - Free Report) closed at $101.02 in the latest trading session, marking a +1.84% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.
The package delivery service's shares have seen an increase of 4.68% over the last month, surpassing the Transportation sector's gain of 3.99% and the S&P 500's gain of 0.54%.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company is predicted to post an EPS of $2.2, indicating a 20% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $23.88 billion, indicating a 5.6% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.91 per share and revenue of $87.95 billion, which would represent changes of -10.49% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for United Parcel Service. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. United Parcel Service is currently a Zacks Rank #3 (Hold).
From a valuation perspective, United Parcel Service is currently exchanging hands at a Forward P/E ratio of 13.61. This represents a discount compared to its industry average Forward P/E of 15.86.
We can additionally observe that UPS currently boasts a PEG ratio of 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.72.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 105, putting it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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United Parcel Service (UPS) Beats Stock Market Upswing: What Investors Need to Know
United Parcel Service (UPS - Free Report) closed at $101.02 in the latest trading session, marking a +1.84% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.19%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq decreased by 0.03%.
The package delivery service's shares have seen an increase of 4.68% over the last month, surpassing the Transportation sector's gain of 3.99% and the S&P 500's gain of 0.54%.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company is predicted to post an EPS of $2.2, indicating a 20% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $23.88 billion, indicating a 5.6% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $6.91 per share and revenue of $87.95 billion, which would represent changes of -10.49% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for United Parcel Service. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. United Parcel Service is currently a Zacks Rank #3 (Hold).
From a valuation perspective, United Parcel Service is currently exchanging hands at a Forward P/E ratio of 13.61. This represents a discount compared to its industry average Forward P/E of 15.86.
We can additionally observe that UPS currently boasts a PEG ratio of 2.24. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.72.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 105, putting it in the top 43% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.