In the latest close session, United Parcel Service (UPS) was up +1.09% at $98.52. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.02%.
The stock of package delivery service has risen by 2.86% in the past month, leading the Transportation sector's loss of 1.81% and the S&P 500's gain of 0.67%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. The company plans to announce its earnings on October 27, 2026. In that report, analysts expect United Parcel Service to post earnings of $1.63 per share. This would mark a year-over-year decline of 6.32%. Our most recent consensus estimate is calling for quarterly revenue of $22.23 billion, up 3.8% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.19 per share and a revenue of $91.71 billion, representing changes of +0.42% and +3.44%, respectively, from the prior 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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.25% lower within the past month. Currently, United Parcel Service is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 13.56. Its industry sports an average Forward P/E of 15.56, so one might conclude that United Parcel Service is trading at a discount comparatively.
Meanwhile, UPS's PEG ratio is currently 1.8. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Air Freight and Cargo was holding an average PEG ratio of 1.5 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 41, putting it in the top 17% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much more, on 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).