United Parcel Service (UPS) wins but lags in the market: what you need to know
IIn the last trading session, United Parcel Service (UPS) closed at $ 179.67, marking a movement of + 0.7% from the previous day. This move fell behind the S&P 500’s 1.05% daily gain.
As of today, shares in the parcel delivery service had lost 9.59% over the past month. At the same time, the transportation sector lost 6.68%, while the S&P 500 lost 5.07%.
Investors are hoping for some strength from UPS as the next publication of its results approaches. The company is expected to post EPS of $ 2.53, up 10.96% from the previous year quarter. Our most recent consensus estimate projects quarterly revenue of $ 22.71 billion, up 6.93% from the previous year.
For the full year, our Zacks consensus estimates project earnings of $ 11.16 per share and revenue of $ 94.69 billion, which would represent changes of + 35.6% and +11. , 89%, respectively, compared to the previous year.
Any recent changes to analysts’ estimates for UPS should also be noted by investors. These revisions help show the ever-changing nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe that these estimate revisions are directly related to stock movements close to the team. Investors can take advantage of this by using the Zacks Ranking. This model takes into account these changes in estimate and provides a simple and workable scoring system.
Ranging from # 1 (strong buy) to # 5 (strong sell), the Zacks Rank system has a proven and externally audited track record of outperformance, with # 1 stocks returning an average of + 25% per year since 1988. Over the past month, Zacks Consensus EPS estimate has fallen 0.01%. UPS currently has a Zacks rank of # 4 (Sell).
Based on its valuation, UPS has a forward P / E ratio of 15.98. This valuation marks a premium over the sector’s average forward P / E of 15.9.
Investors should also note that UPS currently has a PEG ratio of 1.37. This popular metric is similar to the well-known P / E ratio, except that the PEG ratio also takes into account the expected rate of earnings growth of the company. Transportation – Air freight and freight stocks have, on average, a PEG ratio of 1.37 based on yesterday’s closing prices.
The Transport industry – Air freight and freight is part of the Transport sector. This group has a Zacks Industry Rank of 249, placing it in the bottom 2% of all 250+ industries.
The Zacks Industry Rankings assesses the strength of our individual industry groups by measuring the average Zacks rank of individual stocks within groups. Our research shows that the top 50% of industries top the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock market metrics and more on Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.