The most recent trading session ended with United Parcel Service (UPS – Free Report) standing at $124.21, reflecting a +0.34% shift from the previouse trading day’s closing. This change lagged the S&P 500’s 0.55% gain on the day. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq appreciated by 1.24%.
The investment community will be paying close attention to the earnings performance of United Parcel Service in its upcoming release. The company’s upcoming EPS is projected at $2.50, signifying a 1.21% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $25.23 billion, indicating a 1.28% upward movement from the same quarter last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, the Zacks Consensus EPS estimate has shifted 0.23% downward. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, United Parcel Service is presently being traded at a Forward P/E ratio of 14.18. This represents a discount compared to its industry’s average Forward P/E of 14.26.
It’s also important to note that UPS currently trades at 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. The Transportation – Air Freight and Cargo industry had an average PEG ratio of 1.13 as trading concluded yesterday.
The Transportation – Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 91, placing it within the top 37% of over 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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