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United Parcel Service (UPS) Dips More Than Broader Market: What You Should Know

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In the latest close session, United Parcel Service (UPS - Free Report) was down 3.88% at $113.15. The stock's performance was behind the S&P 500's daily loss of 0.19%. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Coming into today, shares of the package delivery service had gained 12.26% in the past month. In that same time, the Transportation sector gained 5.57%, while the S&P 500 gained 0.55%.

The upcoming earnings release of United Parcel Service will be of great interest to investors. The company's earnings report is expected on July 28, 2026. The company is expected to report EPS of $1.65, up 6.45% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $21.75 billion, showing a 2.5% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.1 per share and a revenue of $90.32 billion, representing changes of -0.84% and +1.87%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. 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 16.57. This denotes a discount relative to the industry average Forward P/E of 17.61.

It is also worth noting that UPS currently has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 42% of all 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

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