In the latest trading session, United Parcel Service (UPS - Free Report) closed at $121.66, marking a +1.32% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.19%.
Coming into today, shares of the package delivery service had gained 2.15% in the past month. In that same time, the Transportation sector gained 1.33%, while the S&P 500 gained 3.61%.
Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. In that report, analysts expect UPS to post earnings of $2.05 per share. This would mark year-over-year growth of 12.64%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.34 billion, up 5.12% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.50 per share and revenue of $74.30 billion, which would represent changes of +3.59% and +3.4%, respectively, from the prior year.
Any recent changes to analyst estimates for UPS should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 0.01% higher. UPS is currently a Zacks Rank #3 (Hold).
Looking at its valuation, UPS is holding a Forward P/E ratio of 16.01. For comparison, its industry has an average Forward P/E of 10.36, which means UPS is trading at a premium to the group.
Also, we should mention that UPS has a PEG ratio of 1.83. 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. UPS's industry had an average PEG ratio of 1.35 as of yesterday's close.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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.