In the latest trading session, United Parcel Service (UPS - Free Report) closed at $97.56, marking a -1.59% move from the previous day. This change lagged the S&P 500's 1.07% gain on the day. Meanwhile, the Dow gained 0.65%, and the Nasdaq, a tech-heavy index, added 1.71%.
Prior to today's trading, shares of the package delivery service had gained 2.34% over the past month. This has outpaced the Transportation sector's gain of 0.91% and the S&P 500's loss of 0.58% in that time.
Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. This is expected to be January 31, 2019. In that report, analysts expect UPS to post earnings of $1.91 per share. This would mark year-over-year growth of 14.37%. Meanwhile, our latest consensus estimate is calling for revenue of $19.92 billion, up 5.81% from the prior-year quarter.
Investors might also notice recent changes to analyst estimates for UPS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.13% lower within the past month. UPS is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, UPS is holding a Forward P/E ratio of 12.8. For comparison, its industry has an average Forward P/E of 10.8, which means UPS is trading at a premium to the group.
Meanwhile, UPS's PEG ratio is currently 1.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.12 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 188, putting it in the bottom 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.