United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know
United Parcel Service (UPS) closed at $198.19 in the latest trading session, marking a +0.91% move from the prior day.
United Parcel Service (UPS) closed the most recent trading day at $198.19, moving +0.91% from the previous trading session. This change outpaced the S&P 500's 0.28% gain on the day.
Prior to today's trading, shares of the package delivery service had gained 2.94% over the past month. This has outpaced the Transportation sector's gain of 2.17% and lagged the S&P 500's gain of 3.07% in that time.
UPS will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.53, up 10.96% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $22.71 billion, up 6.93% from the prior-year quarter.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $11.16 per share and revenue of $94.69 billion. These results would represent year-over-year changes of +35.6% and +11.89%, respectively.
Investors might also notice recent changes to analyst estimates for UPS. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. UPS is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, UPS currently has a Forward P/E ratio of 17.59. This represents a premium compared to its industry's average Forward P/E of 16.81.
Also, we should mention that UPS has a PEG ratio of 1.51. 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 was holding an average PEG ratio of 1.51 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 119, putting it in the top 47% 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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