United Parcel Service (UPS) Ascends While Market Falls: Some Facts to Note

United Parcel Service (UPS) ended the recent trading session at $102.46, demonstrating a +2.17% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.48% for the day. Elsewhere, the Dow saw a downswing of 0.29%, while the tech-heavy Nasdaq depreciated by 0.56%.

The package delivery service's stock has dropped by 4.04% in the past month, exceeding the Transportation sector's loss of 4.47% and lagging the S&P 500's loss of 0.82%.

Investors will be eagerly watching for the performance of United Parcel Service in its upcoming earnings disclosure. On that day, United Parcel Service is projected to report earnings of $1.63 per share, which would represent a year-over-year decline of 6.32%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.11 billion, up 3.26% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.22 per share and revenue of $91.37 billion. These totals would mark changes of +0.84% and +3.06%, respectively, from last year.

Investors should also take note of any recent adjustments to analyst estimates for United Parcel Service. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 last 30 days, the Zacks Consensus EPS estimate has moved 0% lower. United Parcel Service is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 13.89. This valuation marks a discount compared to its industry average Forward P/E of 15.

Investors should also note that UPS has a PEG ratio of 1.79 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.66 based on yesterday's closing prices.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 104, putting it in the top 43% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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