United Parcel Service (NYSE:UPS) closed at $179.71 in the latest trading session, marking a +0.04% move from the prior day. This move lagged the S&P 500's daily gain of 0.36%.
Heading into today, shares of the package delivery service had gained 9.69% over the past month, outpacing the Transportation sector's loss of 0.03% and the S&P 500's gain of 5.21% in that time.
Wall Street will be looking for positivity from UPS as it approaches its next earnings report date. This is expected to be April 27, 2021. On that day, UPS is projected to report earnings of $1.64 per share, which would represent year-over-year growth of 42.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.38 billion, up 13% from the year-ago period.
UPS's full-year Zacks Consensus Estimates are calling for earnings of $8.84 per share and revenue of $86.04 billion. These results would represent year-over-year changes of +7.41% and +1.67%, respectively.
Investors should also note any recent changes to analyst estimates for UPS. These revisions help to show the ever-changing nature of near-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. 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 0.34% higher. UPS is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, UPS is currently trading at a Forward P/E ratio of 19.93. Its industry sports an average Forward P/E of 17.22, so we one might conclude that UPS is trading at a premium comparatively.
We can also see that UPS currently has a PEG ratio of 2.29. 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 1.82 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 202, putting it in the bottom 21% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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