United Parcel Service (UPS) Falls More Steeply Than Broader Market: What Investors Need to Know

In the latest trading session, United Parcel Service (UPS) closed at $82.87, marking a -2.83% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 2.71% for the day. Meanwhile, the Dow experienced a drop of 1.9%, and the technology-dominated Nasdaq saw a decrease of 3.56%. The package delivery service's stock has climbed by 0.74% in the past month, falling short of the Transportation sector's gain of 1.27% and the S&P 500's gain of 3.5%.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 upcoming EPS is projected at $1.33, signifying a 24.43% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.84 billion, down 6.31% from the year-ago period. For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.49 per share and a revenue of $87.45 billion, representing changes of -15.93% and -3.98%, respectively, from the prior year. Investors might also notice recent changes to analyst estimates for United Parcel Service. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook. Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% lower. United Parcel Service is currently sporting a Zacks Rank of #4 (Sell). Valuation is also important, so investors should note that United Parcel Service has a Forward P/E ratio of 13.13 right now. This indicates a discount in contrast to its industry's Forward P/E of 13.22. We can also see that UPS currently has a PEG ratio of 1.57. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Transportation - Air Freight and Cargo stocks are, on average, holding a PEG ratio of 1.57 based on yesterday's closing prices. The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 234, positioning it in the bottom 6% of all 250+ industries. The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks