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United Parcel Service (UPS) Stock Slides as Market Rises: Facts to Know Before You Trade
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United Parcel Service (UPS - Free Report) closed at $94.75 in the latest trading session, marking a -4.35% move from the prior day. This change lagged the S&P 500's daily gain of 1.49%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 2.26%.
The stock of package delivery service has fallen by 2.89% in the past month, leading the Transportation sector's loss of 5.43% and undershooting the S&P 500's gain of 0.1%.
The investment community will be closely monitoring the performance of United Parcel Service in its forthcoming earnings report. The company is expected to report EPS of $1.63, down 6.32% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.11 billion, up 3.26% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.22 per share and revenue of $91.37 billion, which would represent changes of +0.84% and +3.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. 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 13.72. This valuation marks a discount compared to its industry average Forward P/E of 15.02.
Also, we should mention that UPS has a PEG ratio of 1.77. 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 1.62 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 107, placing it within the top 44% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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United Parcel Service (UPS) Stock Slides as Market Rises: Facts to Know Before You Trade
United Parcel Service (UPS - Free Report) closed at $94.75 in the latest trading session, marking a -4.35% move from the prior day. This change lagged the S&P 500's daily gain of 1.49%. At the same time, the Dow added 0.71%, and the tech-heavy Nasdaq gained 2.26%.
The stock of package delivery service has fallen by 2.89% in the past month, leading the Transportation sector's loss of 5.43% and undershooting the S&P 500's gain of 0.1%.
The investment community will be closely monitoring the performance of United Parcel Service in its forthcoming earnings report. The company is expected to report EPS of $1.63, down 6.32% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.11 billion, up 3.26% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.22 per share and revenue of $91.37 billion, which would represent changes of +0.84% and +3.06%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has remained steady. 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 13.72. This valuation marks a discount compared to its industry average Forward P/E of 15.02.
Also, we should mention that UPS has a PEG ratio of 1.77. 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 1.62 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 107, placing it within the top 44% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.