United Parcel Service (UPS) Dips More Than Broader Market: What You Should Know

United Parcel Service (UPS) closed the most recent trading day at $102.29, moving -1.17% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.38%. Elsewhere, the Dow saw a downswing of 0.51%, while the tech-heavy Nasdaq depreciated by 0.29%.

The stock of package delivery service has risen by 0.29% in the past month, leading the Transportation sector's loss of 3.4% and undershooting the S&P 500's gain of 2.08%.

Investors will be eagerly watching for the performance of United Parcel Service in its upcoming earnings disclosure. The company is expected to report EPS of $1.63, down 6.32% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $22.11 billion, indicating a 3.26% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.22 per share and a revenue of $91.37 billion, representing changes of +0.84% and +3.06%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for United Parcel Service. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 0.09% rise in the Zacks Consensus EPS estimate. Currently, United Parcel Service is carrying a Zacks Rank of #3 (Hold).

From a valuation perspective, United Parcel Service is currently exchanging hands at a Forward P/E ratio of 14.33. This represents a discount compared to its industry average Forward P/E of 15.44.

Meanwhile, UPS's PEG ratio is currently 1.85. 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 was holding an average PEG ratio of 1.72 at yesterday's closing price.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 98, this industry ranks in the top 40% of all industries, numbering over 250.

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.

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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This article originally published on Zacks Investment Research (zacks.com).

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