The United Parcel Service (UPS) Falls More Than Broader Markets: What You Should Know


United Parcel Service Inc (NYSE:UPS) stock ended the most recent trading day at $161.75, reflecting a movement of -1.57% from the previous trading day’s closing price. This move lagged behind the daily loss of 1.03% seen by the S&P 500. The Dow suffered a loss of 1.11 percent during the same period, while the tech-heavy Nasdaq shed 0.06% of its value.

The stock of the package delivery business dropped by 17.39% in the previous month before today’s opening bell. During the same period, the Transportation sector saw a loss of 15.42%, while the S&P 500 experienced a loss of 10.4%.

As the time draws closer for United Parcel Service Inc (NYSE:UPS) to disclose its upcoming results, Wall Street will be hoping for positive signs from the company. It is anticipated that this will occur on October 25th, 2022. On that day, it was anticipated that United Parcel Service (NYSE:UPS) would post earnings of $2.86 per share, representing a growth of 5.54% compared to the previous year’s results. Meanwhile, our most current average estimate expects sales of $24.39 billion, a 5.19% rise over the same quarter last year.

When considering the entire year, our Zacks Consensus Estimates indicate that analysts anticipate earnings of $12.85 per share and sales of $101.67 billion. The difference between this year’s totals and those of the previous year would be 5.94% and 4.5%, respectively.

These updates demonstrate the fluid nature of short-term business trends by illustrating how they are constantly altering. As a consequence of this, optimistic estimate revisions show the analysts’ favorable outlook for the company’s operations and profitability.

We feel that these estimate adjustments are closely tied to near-term stock movements based on the study that we have conducted. In order to make use of this trend, we established what is now known as the Zacks Rank. Our approach takes into consideration the changes in these estimates and provides a grading model that is transparent and responsive.

The Zacks Rank system, which goes from #1 (Strong Buy) to #5 (Strong Sell), has an excellent track record of outperformance, with #1 stocks having an average yearly return of +25% since 1988. The Zacks Rank system was developed by Zacks Investment Research, which was founded in 1988. The current Zacks Rank for United Parcel Service (NYSE:UPS) is #3, which indicates that investors should hold their positions.

UPS Investors

Investors would be well to take note of the valuation of UPS (NYSE:UPS), which is currently sitting at a Forward P/E ratio of 12.79 at the present time. This price represents a premium when weighed against the forward price-to-earnings ratio for its sector, which is, on average, 10.72.

It is also important to mention that UPS’s PEG ratio is at 1.44 at present. This common statistic is quite similar to the well-known P/E ratio; however, the PEG ratio differs from the P/E ratio in that it also considers the firm’s predicted earnings growth rate. As of yesterday’s end, the average PEG ratio for UPS’s industry was 1.09.

The Transportation sector includes the Transportation – Air Freight and Cargo industry as one of its subsectors. The Zacks Industry Rank for this category is 97, which places it in the top 39% of the more than 250 different industries.

By calculating the average Zacks Rank of the individual stocks that make up each industry group, the Zacks Industry Rank is able to determine the relative strength of each of our distinct industry groupings. According to the findings of our research, the industries that received ratings in the top 50% do much better than those that received ratings in the bottom 50%.

Be sure to make use of in order to keep track of all of these stock-moving metrics in addition to others in the subsequent trading sessions.


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About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.