In the latest trading session, United Parcel Service (UPS - Free Report) closed at $101.48, marking a +1.01% move from the previous day. This change lagged the S&P 500's 1.31% gain on the day. At the same time, the Dow added 1.9%, and the tech-heavy Nasdaq gained 1.01%.
UPS will be looking to display strength as it nears its next earnings release. In that report, analysts expect UPS to post earnings of $1.06 per share. This would mark a year-over-year decline of 45.92%. Meanwhile, our latest consensus estimate is calling for revenue of $17.31 billion, down 4.07% from the prior-year quarter.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $5.56 per share and revenue of $74.40 billion. These results would represent year-over-year changes of -26.16% and +0.41%, respectively.
Investors might also notice recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 0.37% lower. UPS currently has a Zacks Rank of #4 (Sell).
Digging into valuation, UPS currently has a Forward P/E ratio of 18.07. For comparison, its industry has an average Forward P/E of 13.72, which means UPS is trading at a premium to the group.
It is also worth noting that UPS currently has a PEG ratio of 2.46. 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 1.77 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.