United Parcel Service (UPS - Free Report) closed at $95.75 in the latest trading session, marking a +1.03% move from the prior day. This change outpaced the S&P 500's 0.21% gain on the day. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.27%.
Prior to today's trading, shares of the package delivery service had lost 9.42% over the past month. This has lagged the Transportation sector's loss of 7.11% and the S&P 500's loss of 5.26% in that time.
UPS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.93, down 0.52% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.94 billion, up 2.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.47 per share and revenue of $74.46 billion, which would represent changes of +3.18% and +3.62%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. UPS is holding a Zacks Rank of #4 (Sell) right now.
Investors should also note UPS's current valuation metrics, including its Forward P/E ratio of 12.69. This represents a premium compared to its industry's average Forward P/E of 11.52.
Investors should also note that UPS has a PEG ratio of 1.46 right now. 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. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.14 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.