United Parcel Service (UPS - Free Report) closed at $98.23 in the latest trading session, marking a +0.23% move from the prior day. This change lagged the S&P 500's 1.05% gain on the day. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, added 1.66%.
Prior to today's trading, shares of the package delivery service had lost 2.73% over the past month. This has was narrower than the Transportation sector's loss of 5.27% and the S&P 500's loss of 2.76% in that time.
Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. The company is expected to report EPS of $1.93, down 0.52% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.94 billion, up 2.77% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.46 per share and revenue of $74.46 billion, which would represent changes of +3.04% and +3.62%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for UPS. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Within the past 30 days, our consensus EPS projection has moved 0.1% lower. UPS is currently a Zacks Rank #4 (Sell).
In terms of valuation, UPS is currently trading at a Forward P/E ratio of 13.13. This valuation marks a premium compared to its industry's average Forward P/E of 12.67.
It is also worth noting that UPS currently has a PEG ratio of 1.51. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.13 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow UPS in the coming trading sessions, be sure to utilize Zacks.com.