In the latest trading session, United Parcel Service (UPS) closed at $110.02, marking a +1.09% move from the previous day. This move outpaced the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 1.15%.
Coming into today, shares of the package delivery service had gained 13.92% in the past month. In that same time, the Transportation sector gained 7.16%, while the S&P 500 gained 2.14%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. The company is forecasted to report an EPS of $1.67, showcasing a 7.74% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $21.51 billion, reflecting a 1.34% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.1 per share and a revenue of $89.78 billion, demonstrating changes of -0.84% and +1.26%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for United Parcel Service. 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 business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. United Parcel Service is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 15.33. Its industry sports an average Forward P/E of 15.69, so one might conclude that United Parcel Service is trading at a discount comparatively.
It is also worth noting that UPS currently has a PEG ratio of 1.73. 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 1.67 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 109, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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
This article originally published on Zacks Investment Research (zacks.com).