United Parcel Service (UPS) closed at $99.72 in the latest trading session, marking a +0.1% move from the prior day. This change outpaced the S&P 500's 0.21% loss on the day. Meanwhile, the Dow lost 0.58%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. The company is expected to report EPS of $1.06, down 45.92% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $17.31 billion, down 4.07% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.58 per share and revenue of $74.40 billion. These totals would mark changes of -25.9% and +0.41%, respectively, from last year.
Any recent changes to analyst estimates for UPS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 15.22% lower. UPS is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, UPS is currently trading at a Forward P/E ratio of 17.85. This represents a premium compared to its industry's average Forward P/E of 14.76.
Also, we should mention that UPS has a PEG ratio of 2.43. 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. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.82 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 46, putting it in the top 19% 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.
To follow UPS in the coming trading sessions, be sure to utilize Zacks.com.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
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