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United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know

United Parcel Service (UPS) closed at $187.32 in the latest trading session, marking a +0.67% move from the prior day. This change outpaced the S&P 500's 0.17% gain on the day. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.67%.

Coming into today, shares of the package delivery service had gained 3.29% in the past month. In that same time, the Transportation sector lost 3.57%, while the S&P 500 gained 0.25%.

Investors will be hoping for strength from United Parcel Service as it approaches its next earnings release, which is expected to be April 25, 2023. On that day, United Parcel Service is projected to report earnings of $2.23 per share, which would represent a year-over-year decline of 26.89%. Meanwhile, our latest consensus estimate is calling for revenue of $22.96 billion, down 5.84% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.45 per share and revenue of $97.75 billion. These totals would mark changes of -11.51% and -2.58%, respectively, from last year.

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Any recent changes to analyst estimates for United Parcel Service should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.13% lower within the past month. United Parcel Service currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 16.25. For comparison, its industry has an average Forward P/E of 15.68, which means United Parcel Service is trading at a premium to the group.

It is also worth noting that UPS currently has a PEG ratio of 2.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.58 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

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

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Zacks Investment Research