In the latest trading session, United Parcel Service (UPS - Free Report) closed at $91.90, marking a -1.67% move from the previous day. This move was narrower than the S&P 500's daily loss of 2.93%. Meanwhile, the Dow lost 3.04%, and the Nasdaq, a tech-heavy index, lost 0.27%.
Prior to today's trading, shares of the package delivery service had lost 12.23% over the past month. This has was narrower than the Transportation sector's loss of 37.07% and the S&P 500's loss of 31.71% in that time.
Investors will be hoping for strength from UPS as it approaches its next earnings release. In that report, analysts expect UPS to post earnings of $1.40 per share. This would mark year-over-year growth of 0.72%. Our most recent consensus estimate is calling for quarterly revenue of $17.95 billion, up 4.63% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.78 per share and revenue of $77.29 billion. These totals would mark changes of +3.32% and +4.31%, respectively, from last 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Over the past month, the Zacks Consensus EPS estimate has moved 1.5% lower. UPS is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, UPS currently has a Forward P/E ratio of 12.02. Its industry sports an average Forward P/E of 11.35, so we one might conclude that UPS is trading at a premium comparatively.
We can also see that UPS currently has a PEG ratio of 1.39. 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. UPS's industry had an average PEG ratio of 1.18 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 105, putting it in the top 42% 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.