United Parcel Service (UPS) ended the recent trading session at $102.38, demonstrating a +1.52% change from the preceding day's closing price. The stock outpaced the S&P 500's daily loss of 0.07%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.03%.
The package delivery service's shares have seen an increase of 1.55% over the last month, not keeping up with the Transportation sector's gain of 2.01% and the S&P 500's gain of 3.94%.
Market participants will be closely following the financial results of United Parcel Service in its upcoming release. It is anticipated that the company will report an EPS of $1.56, marking a 12.85% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $20.82 billion, reflecting a 4.59% fall from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.01 per share and a revenue of $87.21 billion, representing changes of -9.2% and -4.24%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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, the Zacks Consensus EPS estimate has shifted 0.98% downward. Currently, United Parcel Service is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, United Parcel Service is presently trading at a Forward P/E ratio of 14.38. This represents no noticeable deviation compared to its industry average Forward P/E of 14.38.
It's also important to note that UPS currently trades at a PEG ratio of 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Transportation – Air Freight and Cargo industry held an average PEG ratio of 1.95.
