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

United Parcel Service (UPS) closed at $103.20 in the latest trading session, marking a -0.43% move from the prior day. This move lagged the S&P 500's daily loss of 0.34%. Elsewhere, the Dow gained 0.05%, while the tech-heavy Nasdaq lost 0.69%.

Investors will be hoping for strength from UPS as it approaches its next earnings release. On that day, UPS is projected to report earnings of $1.06 per share, which would represent a year-over-year decline of 45.92%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.31 billion, down 4.07% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.58 per share and revenue of $74.40 billion, which would represent changes of -25.9% and +0.41%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for UPS. These recent revisions tend to reflect the evolving 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 these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. The Zacks Consensus EPS estimate has moved 0.81% lower within the past month. UPS is currently sporting a Zacks Rank of #4 (Sell).

Investors should also note UPS's current valuation metrics, including its Forward P/E ratio of 18.58. Its industry sports an average Forward P/E of 14.31, so we one might conclude that UPS is trading at a premium comparatively.

Investors should also note that UPS has a PEG ratio of 2.53 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. UPS's industry had an average PEG ratio of 1.85 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 47, which puts it in the top 19% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
United Parcel Service, Inc. (UPS) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research