Yahoo Finance United Parcel Service (UPS) Stock Sinks As Market Gains: What You Should Know
United Parcel Service (UPS) closed the most recent trading day at $167.59, moving -0.15% from the previous trading session. This move lagged the S&P 500's daily gain of 0.24%. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.73%.
Coming into today, shares of the package delivery service had lost 3.75% in the past month. In that same time, the Transportation sector lost 0.59%, while the S&P 500 gained 3.56%.
United Parcel Service will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.54, down 22.8% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $22.93 billion, down 7.41% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.78 per share and revenue of $96.45 billion, which would represent changes of -16.69% and -3.87%, respectively, from the prior year.
Investors should also note any 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.35% 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 15.57. For comparison, its industry has an average Forward P/E of 13.82, which means United Parcel Service is trading at a premium to the group.
Meanwhile, UPS's PEG ratio is currently 1.56. 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 industry currently had an average PEG ratio of 1.56 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 224, putting it in the bottom 12% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
