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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 the most recent trading day at $112.47, moving +1.56% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.29%.
Prior to today's trading, shares of the package delivery service had gained 1.92% outpaced the Transportation sector's gain of 0.73% and lagged the S&P 500's gain of 2.2%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. It is anticipated that the company will report an EPS of $1.66, marking a 7.1% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $21.63 billion, up 1.94% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.11 per share and a revenue of $90.29 billion, demonstrating changes of -0.7% and +1.84%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% higher. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, United Parcel Service is at present trading with a Forward P/E ratio of 15.57. This valuation marks a discount compared to its industry average Forward P/E of 16.21.
Also, we should mention that UPS has a PEG ratio of 1.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.74.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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United Parcel Service (UPS) Outperforms Broader Market: What You Need to Know
United Parcel Service (UPS - Free Report) closed the most recent trading day at $112.47, moving +1.56% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.42%. On the other hand, the Dow registered a gain of 0.29%, and the technology-centric Nasdaq increased by 0.29%.
Prior to today's trading, shares of the package delivery service had gained 1.92% outpaced the Transportation sector's gain of 0.73% and lagged the S&P 500's gain of 2.2%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. It is anticipated that the company will report an EPS of $1.66, marking a 7.1% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $21.63 billion, up 1.94% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $7.11 per share and a revenue of $90.29 billion, demonstrating changes of -0.7% and +1.84%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.14% higher. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
In the context of valuation, United Parcel Service is at present trading with a Forward P/E ratio of 15.57. This valuation marks a discount compared to its industry average Forward P/E of 16.21.
Also, we should mention that UPS has a PEG ratio of 1.76. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.74.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.