Why United Parcel Service (UPS) Outpaced the Stock Market Today

United Parcel Service (UPS) closed at $84.38 in the latest trading session, marking a +1.02% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.34%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.42%. Shares of the package delivery service have depreciated by 1.99% over the course of the past month, underperforming the Transportation sector's loss of 0.18%, and the S&P 500's gain of 3.54%.The investment community will be closely monitoring the performance of United Parcel Service in its forthcoming earnings report. The company is predicted to post an EPS of $1.33, indicating a 24.43% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $20.86 billion, indicating a 6.23% decline compared to the corresponding quarter of the prior year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $6.5 per share and revenue of $87.5 billion, indicating changes of -15.8% and -3.92%, respectively, compared to the previous year. Investors should also take note of any recent adjustments to analyst estimates for United Parcel Service. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability. Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, there's been a 0.41% fall in the Zacks Consensus EPS estimate. At present, United Parcel Service boasts a Zacks Rank of #4 (Sell). From a valuation perspective, United Parcel Service is currently exchanging hands at a Forward P/E ratio of 12.85. This represents a discount compared to its industry average Forward P/E of 13.06. It is also worth noting that UPS currently has a PEG ratio of 1.54. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.54 as trading concluded yesterday. The Transportation - Air Freight and Cargo industry is part of the Transportation sector. With its current Zacks Industry Rank of 197, this industry ranks in the bottom 21% of all industries, numbering over 250. 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. Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions. Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI stocks now >>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