United Parcel Service (UPS) closed the most recent trading day at $198.05, moving -1.18% from the previous trading session. This change lagged the S&P 500's 0.04% loss on the day.
Prior to today's trading, shares of the package delivery service had lost 6.5% over the past month. This has lagged the Transportation sector's loss of 3.16% and the S&P 500's gain of 1.35% in that time.
Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. This is expected to be July 27, 2021. The company is expected to report EPS of $2.67, up 25.35% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $22.88 billion, up 11.81% from the year-ago period.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $10.81 per share and revenue of $92.59 billion. These results would represent year-over-year changes of +31.35% and +9.4%, respectively.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate has moved 0.94% higher within the past month. UPS currently has a Zacks Rank of #2 (Buy).
Digging into valuation, UPS currently has a Forward P/E ratio of 18.55. This represents a premium compared to its industry's average Forward P/E of 14.35.
It is also worth noting that UPS currently has a PEG ratio of 1.55. 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 1.37 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 9, putting it in the top 4% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research