United Parcel Service (UPS) closed the most recent trading day at $98.08, moving +0.74% from the previous trading session. This change outpaced the S&P 500’s 0.58% gain on the day. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.81%.
Shares of the package delivery service have appreciated by 1.88% over the course of the past month, underperforming the Transportation sector’s gain of 4.26% and the S&P 500’s gain of 4.61%.
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The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company’s upcoming EPS is projected at $1.57, signifying a 12.29% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $20.84 billion, reflecting a 4.51% fall from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.08 per share and revenue of $87.37 billion. These totals would mark changes of -8.29% and -4.06%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.78% decrease. At present, United Parcel Service boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 13.75. This expresses no noticeable deviation compared to the average Forward P/E of 13.75 of its industry.
Investors should also note that UPS has a PEG ratio of 1.71 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. As the market closed yesterday, the Transportation – Air Freight and Cargo industry was having an average PEG ratio of 1.71.
