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United Parcel Service (UPS) Exceeds Market Returns: Some Facts to Consider

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The latest trading session saw United Parcel Service (UPS - Free Report) ending at $129.52, denoting a +0.61% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.25%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.56%.

The package delivery service's shares have seen a decrease of 0.4% over the last month, not keeping up with the Transportation sector's gain of 2.16% and the S&P 500's gain of 1.65%.

Analysts and investors alike will be keeping a close eye on the performance of United Parcel Service in its upcoming earnings disclosure. The company's earnings report is set to go public on October 24, 2024. On that day, United Parcel Service is projected to report earnings of $1.63 per share, which would represent year-over-year growth of 3.82%. In the meantime, our current consensus estimate forecasts the revenue to be $22.22 billion, indicating a 5.52% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.43 per share and a revenue of $92.04 billion, signifying shifts of -15.38% and +1.19%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for United Parcel Service. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, United Parcel Service boasts a Zacks Rank of #4 (Sell).

Looking at its valuation, United Parcel Service is holding a Forward P/E ratio of 17.33. For comparison, its industry has an average Forward P/E of 17.8, which means United Parcel Service is trading at a discount to the group.

It's also important to note that UPS currently trades at a PEG ratio of 1.89. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. UPS's industry had an average PEG ratio of 1.55 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 37% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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