In the latest trading session, United Parcel Service (UPS) closed at $167.12, marking a +1.43% move from the previous day. This change lagged the S&P 500's 1.97% gain on the day. Meanwhile, the Dow gained 1.88%, and the Nasdaq, a tech-heavy index, added 0.24%.
Heading into today, shares of the package delivery service had lost 15.52% over the past month, lagging the Transportation sector's loss of 14.61% and the S&P 500's loss of 9.93% in that time.
United Parcel Service will be looking to display strength as it nears its next earnings release, which 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, the Zacks Consensus Estimate for revenue is projecting net sales of $24.39 billion, up 5.19% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $12.85 per share and revenue of $101.67 billion, which would represent changes of +5.94% and +4.5%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for United Parcel Service. 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.01% lower. United Parcel Service is currently a Zacks Rank #3 (Hold).
Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 12.83. For comparison, its industry has an average Forward P/E of 10.88, which means United Parcel Service is trading at a premium to the group.
Meanwhile, UPS's PEG ratio is currently 1.45. 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. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.07 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 95, putting it in the top 38% 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.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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