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United Parcel Service (UPS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

In the latest trading session, United Parcel Service (UPS) closed at $136.60, marking a -0.2% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%. Elsewhere, the Dow gained 0.04%, while the tech-heavy Nasdaq lost 0.18%.

Prior to today's trading, shares of the package delivery service had lost 1.6% over the past month. This has was narrower than the Transportation sector's loss of 4.01% and lagged the S&P 500's gain of 3.15% in that time.

The upcoming earnings release of United Parcel Service will be of great interest to investors. The company is predicted to post an EPS of $2, indicating a 21.26% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $22.37 billion, up 1.42% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $8.22 per share and revenue of $93.05 billion. These totals would mark changes of -6.38% and +2.3%, respectively, from last year.

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It is also important to note the recent changes to analyst estimates for United Parcel Service. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, United Parcel Service possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that United Parcel Service has a Forward P/E ratio of 16.65 right now. This represents a discount compared to its industry's average Forward P/E of 16.94.

It is also worth noting that UPS currently has a PEG ratio of 1.74. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Transportation - Air Freight and Cargo industry held an average PEG ratio of 1.43.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 103, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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

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Zacks Investment Research