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United Parcel Service (UPS) Outpaces Stock Market Gains: What You Should Know

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United Parcel Service (UPS - Free Report) closed the most recent trading day at $134.60, moving +1.32% from the previous trading session. The stock exceeded the S&P 500, which registered a gain of 0.61% for the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 0.33%.

Heading into today, shares of the package delivery service had gained 3.44% over the past month, outpacing the Transportation sector's gain of 3.02% and lagging the S&P 500's gain of 5.36% in that time.

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. It is anticipated that the company will report an EPS of $1.64, marking a 4.46% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $22.23 billion, showing a 5.55% escalation compared to the year-ago quarter.

UPS's full-year Zacks Consensus Estimates are calling for earnings of $7.43 per share and revenue of $91.98 billion. These results would represent year-over-year changes of -15.38% and +1.13%, respectively.

It is also important to note the recent changes to analyst estimates for United Parcel Service. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% higher within the past month. Right now, United Parcel Service possesses a Zacks Rank of #3 (Hold).

Looking at valuation, United Parcel Service is presently trading at a Forward P/E ratio of 17.87. This indicates a discount in contrast to its industry's Forward P/E of 17.99.

We can also see that UPS currently has a PEG ratio of 1.95. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. UPS's industry had an average PEG ratio of 1.74 as of yesterday's close.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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