Here's Why United Parcel Service (UPS) Gained But Lagged the Market Today
United Parcel Service (UPS) closed the most recent trading day at $131.25, moving +0.41% from the previous trading session. This move lagged the S&P 500's daily gain of 0.9%. At the same time, the Dow added 0.81%, and the tech-heavy Nasdaq gained 1.22%.
The the stock of package delivery service has risen by 2.61% in the past month, leading the Transportation sector's gain of 0.9% and undershooting the S&P 500's gain of 3.15%.
The investment community will be closely monitoring the performance of United Parcel Service in its forthcoming earnings report. The company is scheduled to release its earnings on October 24, 2024. The company's upcoming EPS is projected at $1.63, signifying a 3.82% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $22.22 billion, indicating a 5.52% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.43 per share and revenue of $92.04 billion, indicating changes of -15.38% and +1.19%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for United Parcel Service. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 past month, there's been no change in the Zacks Consensus EPS estimate. At present, United Parcel Service boasts a Zacks Rank of #4 (Sell).
In the context of valuation, United Parcel Service is at present trading with a Forward P/E ratio of 17.6. This signifies a premium in comparison to the average Forward P/E of 17.53 for its industry.
We can also see that UPS currently has a PEG ratio of 1.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.48 as trading concluded yesterday.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 98, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report