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Here's Why United Parcel Service (UPS) Fell More Than Broader Market September 05, 2024
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United Parcel Service (UPS - Free Report) closed the most recent trading day at $127.40, moving -1.18% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.3% for the day. On the other hand, the Dow registered a loss of 0.54%, and the technology-centric Nasdaq increased by 0.25%.
Shares of the package delivery service have appreciated by 4.54% over the course of the past month, outperforming the Transportation sector's gain of 3.95% and the S&P 500's gain of 3.42%.
Investors will be eagerly watching for the performance of United Parcel Service in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.63, indicating a 3.82% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.22 billion, up 5.52% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.43 per share and revenue of $92.04 billion, indicating changes of -15.38% and +1.19%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.74% lower. United Parcel Service currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, United Parcel Service is currently exchanging hands at a Forward P/E ratio of 17.36. This indicates a discount in contrast to its industry's Forward P/E of 17.38.
Also, we should mention that UPS has a PEG ratio of 1.9. 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 was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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United Parcel Service (UPS - Free Report) closed the most recent trading day at $127.40, moving -1.18% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.3% for the day. On the other hand, the Dow registered a loss of 0.54%, and the technology-centric Nasdaq increased by 0.25%.
Shares of the package delivery service have appreciated by 4.54% over the course of the past month, outperforming the Transportation sector's gain of 3.95% and the S&P 500's gain of 3.42%.
Investors will be eagerly watching for the performance of United Parcel Service in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.63, indicating a 3.82% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.22 billion, up 5.52% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $7.43 per share and revenue of $92.04 billion, indicating changes of -15.38% and +1.19%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.74% lower. United Parcel Service currently has a Zacks Rank of #4 (Sell).
From a valuation perspective, United Parcel Service is currently exchanging hands at a Forward P/E ratio of 17.36. This indicates a discount in contrast to its industry's Forward P/E of 17.38.
Also, we should mention that UPS has a PEG ratio of 1.9. 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 was holding an average PEG ratio of 1.45 at yesterday's closing price.
The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 100, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.