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United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know

United Parcel Service (UPS) closed the most recent trading day at $182.09, moving +1.33% from the previous trading session. This change outpaced the S&P 500's 0.25% gain on the day. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq added 7.26%.

Coming into today, shares of the package delivery service had gained 2.25% in the past month. In that same time, the Transportation sector gained 2.99%, while the S&P 500 gained 5.73%.

Wall Street will be looking for positivity from United Parcel Service as it approaches its next earnings report date. This is expected to be January 31, 2023. The company is expected to report EPS of $3.58, down 0.28% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $27.95 billion, up 0.63% from the year-ago period.

It is also important to note the recent changes to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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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. The Zacks Consensus EPS estimate has moved 0.75% lower within the past month. 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 14.84. For comparison, its industry has an average Forward P/E of 13.98, which means United Parcel Service is trading at a premium to the group.

Investors should also note that UPS has a PEG ratio of 1.83 right now. 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. UPS's industry had an average PEG ratio of 1.75 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.

You can find more information on all of these metrics, and much more, on Zacks.com.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

United Parcel Service, Inc. (UPS) : Free Stock Analysis Report

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Zacks Investment Research