In the latest trading session, United Parcel Service (UPS) closed at $161.75, marking a -1.57% move from the previous day. This move lagged the S&P 500's daily loss of 1.03%. At the same time, the Dow lost 1.11%, and the tech-heavy Nasdaq lost 0.06%.
Coming into today, shares of the package delivery service had lost 17.39% in the past month. In that same time, the Transportation sector lost 15.42%, while the S&P 500 lost 10.4%.
Wall Street will be looking for positivity from United Parcel Service as it approaches its next earnings report date. This is expected to be October 25, 2022. On that day, United Parcel Service is projected to report earnings of $2.86 per share, which would represent year-over-year growth of 5.54%. Meanwhile, our latest consensus estimate is calling for revenue of $24.39 billion, up 5.19% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.85 per share and revenue of $101.67 billion. These totals would mark changes of +5.94% and +4.5%, respectively, from last year.
Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.01% lower within the past month. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that United Parcel Service has a Forward P/E ratio of 12.79 right now. This represents a premium compared to its industry's average Forward P/E of 10.72.
It is also worth noting that UPS currently has a PEG ratio of 1.44. 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 1.09 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 97, putting it in the top 39% 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.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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