In the last trading session, United Parcel Service (UPS) closed at $ 212.19, rising 1.8% from the previous day. The change topped the S&P 500’s 0.62% gain on the day. At the same time, the Dow Jones rose 0.55% and the tech-rich Nasdaq lost 0.03%.
As of today, shares of the parcel delivery service had gained 1.78% over the past month. At the same time, the transportation sector lost 1.26%, while the S&P 500 gained 0.87%.
United Parcel Service will look to show some strength as the next results release draws near. In this report, analysts expect United Parcel Service to post earnings of $ 3.05 per share. That would mark year-over-year growth of 14.66%. Meanwhile, our latest consensus estimate projects revenue of $ 26.97 billion, up 8.35% from the previous year’s quarter.
For the full year, our consensus estimates from Zacks suggest analysts expect earnings of $ 11.58 per share and revenue of $ 96.42 billion. These totals would mark changes of + 40.7% and + 13.93%, respectively, compared to last year.
Investors should also note any recent changes in analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest short-term business trends. With this in mind, we can take positive estimate revisions as a sign of optimism about the company’s business prospects.
Research indicates that these estimate revisions are directly correlated with short-term stock price dynamics. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these rating changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from # 1 (strong buy) to # 5 (strong sell), has an impressive history of externally audited outperformance, with # 1 stocks generating an average annual return of + 25% since 1988. Over last month, the Zacks Consensus EPS estimate has fallen 0.02%. United Parcel Service currently holds a Zacks rank of 3 (Hold).
The valuation is also important, so investors should note that United Parcel Service currently has a forward P / E ratio of 18.33. Its sector has an average forward P / E of 17.42, so one could conclude that United Parcel Service is trading at a comparatively premium.
In addition, it should be mentioned that the UPS has a PEG ratio of 1.51. The PEG ratio is similar to the widely used P / E ratio, but this metric also takes into account the expected profit growth rate of the company. Transportation – Air Freight and Freight held an average PEG ratio of 1.51 at yesterday’s closing price.
The Transport industry – Air freight and freight is part of the Transport sector. This industry currently has a Zacks Industry Rank of 29, which places it in the top 12% of all 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to track all of these stock market metrics, and more, over future trading sessions.
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United Parcel Service, Inc. (UPS): Free Stock Analysis Report
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