Yahoo Finance United Parcel Service (UPS) Gains As Market Dips: What You Should Know
United Parcel Service (UPS) closed at $107.77 in the latest trading session, marking a +0.18% move from the prior day. This change outpaced the S&P 500's 0.57% loss on the day. Elsewhere, the Dow lost 0.8%, while the tech-heavy Nasdaq added 0.03%.
Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. On that day, UPS is projected to report earnings of $1.06 per share, which would represent a year-over-year decline of 45.92%. Meanwhile, our latest consensus estimate is calling for revenue of $17.31 billion, down 4.07% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.54 per share and revenue of $74.29 billion, which would represent changes of -26.43% and +0.26%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for UPS. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 0.73% lower within the past month. UPS is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, UPS currently has a Forward P/E ratio of 19.42. This represents a premium compared to its industry's average Forward P/E of 14.65.
It is also worth noting that UPS currently has a PEG ratio of 2.64. 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. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
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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