The United Parcel Service (UPS Stock) Makes Progress but Trails the Market Overall

UPS stock

In the recent trading session, United Parcel Service Inc (NYSE:UPS) finished at $167.12, representing a +1.43% gain from the previous day. This shift came in behind the 1.97% gain that the S&P 500 posted for the day. In the meantime, the Dow advanced by 1.88%, while the Nasdaq, which is focused on technology, climbed 0.24%.

Shares in the package delivery industry had been down 15.52% over the previous month as of today, trailing only the Transportation sector’s loss of 14.61% and the S&P 500’s loss of 9.93% over that time.

When United Parcel Service (UPS stock) gets closer to reporting its following results, which are slated to be on October 25, 2022, the company will aim to show that it is vital. On that day, United Parcel Service is anticipated to announce $2.86 per share earnings, representing a year-over-year increase of 5.54%. Meanwhile, the Zacks Consensus Estimate for revenue predicts that net sales will come in at $24.39 billion, representing a 5.19% increase from the same time period the previous year.

UPS Stock Price Projection

Our Zacks Consensus Estimates are projecting earnings of $12.85 per share and revenue of $101.67 billion for the whole year, representing changes of +5.94% and +4.5%, respectively, from the previous year’s numbers. These figures are based on the company’s historical performance.

In addition, it is necessary to take into account the recent alterations that have taken place in the expectations of analysts about United Parcel Service. These updates illustrate how short-term business trends are consistently shifting, which is a demonstration of the fluid nature of short-term business trends. As a direct result of this, the analysts have a positive perspective on the company’s operations and profitability, which is reflected in the optimistic estimate revisions.

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, we have established the Zacks Rank. This proprietary methodology gives an actionable grading system that considers changes in the estimates that have been provided.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has a proven, independently audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Rank system can be found here. The consensus estimate of our earnings per share has decreased by 0.01% over the past 30 days. Zacks’s Rank #3 is currently held by United Parcel Service (UPS stock) (Hold).

United Parcel Service has a Forward P/E ratio of 12.83, indicating the company’s value is relatively high. United Parcel Service is trading at a premium to the group compared to its average Forward P/E of 10.88, which indicates that it is trading at a premium to its industry.

In the meantime, UPS stock’s PEG ratio sits at 1.45. 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. At the price at which trading for yesterday concluded, the Transportation – Air Freight and Cargo sector maintained an average PEG ratio of 1.07.

The Transportation sector includes the Transportation – Air Freight and Cargo industry as one of its subsectors. This group has a Zacks Industry Rank of 95, putting it in the top 38% of all 250+ industries.

The strength of our industry groupings is evaluated using the Zacks Industry Rank, which does so by calculating the average Zacks Rank of the individual stocks that are contained inside the groups. According to our research findings, the industries that received ratings in the top 50% do much better than those that received ratings in the bottom 50%.


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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.