In the latest trading session, United Parcel Service (UPS) closed at $205.61, marking a -0.24% move from the previous day. This change lagged the S&P 500's 0.33% gain on the day.
Heading into today, shares of the package delivery service had lost 3.15% over the past month, outpacing the Transportation sector's loss of 5.95% and lagging the S&P 500's gain of 1.74% 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 July 27, 2021. In that report, analysts expect UPS to post earnings of $2.68 per share. This would mark year-over-year growth of 25.82%. Meanwhile, our latest consensus estimate is calling for revenue of $22.92 billion, up 12.03% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.81 per share and revenue of $92.86 billion. These totals would mark changes of +31.35% and +9.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for UPS. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.94% higher within the past month. UPS is currently sporting a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that UPS has a Forward P/E ratio of 19.07 right now. For comparison, its industry has an average Forward P/E of 14.55, which means UPS is trading at a premium to the group.
We can also see that UPS currently has a PEG ratio of 1.59. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Transportation - Air Freight and Cargo industry currently had an average PEG ratio of 1.41 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 7, putting it in the top 3% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.