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United Parcel Service (UPS) closed the most recent trading day at $212.46, moving +0.5% from the previous trading session. This move lagged the S&P 500's daily gain of 1.52%.
Prior to today's trading, shares of the package delivery service had gained 3.98% over the past month. This has outpaced the Transportation sector's loss of 2.67% and the S&P 500's gain of 2.41% in that time.
Investors will be hoping for strength from UPS as it approaches its next earnings release, which is expected to be July 27, 2021. The company is expected to report EPS of $2.71, up 27.23% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $23.09 billion, up 12.84% from the prior-year quarter.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $10.83 per share and revenue of $93.09 billion. These results would represent year-over-year changes of +31.59% and +10%, respectively.
Investors should also note any recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving nature of short-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. 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. The Zacks Consensus EPS estimate has moved 0.23% higher within the past month. UPS is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, UPS currently has a Forward P/E ratio of 19.52. Its industry sports an average Forward P/E of 13.55, 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 1.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.39 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 116, which puts it in the top 46% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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