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United Parcel Service (UPS) closed at $193.39 in the latest trading session, marking a -0.19% move from the prior day. This move lagged the S&P 500’s daily gain of 0.34%.
Coming into today, shares of the package delivery service had gained 1.96% in the past month. In that same time, the Transportation sector gained 1.1%, while the S&P 500 lost 0.12%.
Investors will be hoping for strength from UPS as it approaches its next earnings release, which is expected to be October 26, 2021. On that day, UPS is projected to report earnings of $2.52 per share, which would represent year-over-year growth of 10.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $22.63 billion, up 6.54% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.21 per share and revenue of $94.99 billion, which would represent changes of +36.21% and +12.24%, respectively, from the prior year.
Any recent changes to analyst estimates for UPS should also be noted by investors. 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 company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection has moved 0.45% higher. UPS is currently a Zacks Rank #3 (Hold).
Investors should also note UPS’s current valuation metrics, including its Forward P/E ratio of 17.28. This represents a premium compared to its industry’s average Forward P/E of 14.8.
Meanwhile, UPS’s PEG ratio is currently 1.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. UPS’s industry had an average PEG ratio of 1.48 as of yesterday’s close.
The Transportation – Air Freight and Cargo industry is part of the Transportation sector. This group has a Zacks Industry Rank of 222, putting it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow UPS in the coming trading sessions, be sure to utilize Zacks.com.
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United Parcel Service, Inc. (UPS): Free Stock Analysis Report
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