United Parcel Service (UPS) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Company Overview - United Parcel Service (UPS) closed at $136.60, reflecting a -0.2% change from the previous day, which was a slight lag compared to the S&P 500's daily loss of 0.16% [1] - Over the past month, UPS shares have decreased by 1.6%, which is better than the Transportation sector's loss of 4.01% and lagging behind the S&P 500's gain of 3.15% [1] Earnings Forecast - The upcoming earnings release is anticipated, with an expected EPS of $2, indicating a 21.26% decline compared to the same quarter last year [1] - Revenue is projected to be $22.37 billion, reflecting a 1.42% increase from the prior-year quarter [1] - For the full year, analysts expect earnings of $8.22 per share and revenue of $93.05 billion, marking changes of -6.38% and +2.3% respectively from last year [2] Analyst Estimates and Valuation - Recent changes in analyst estimates suggest evolving short-term business trends, with positive revisions indicating confidence in UPS's performance [2] - The Zacks Rank system currently rates UPS at 3 (Hold), with the consensus EPS estimate remaining stagnant over the past month [3] - UPS has a Forward P/E ratio of 16.65, which is a discount compared to the industry's average Forward P/E of 16.94 [3] - The company has a PEG ratio of 1.74, while the Transportation - Air Freight and Cargo industry has an average PEG ratio of 1.43 [3] Industry Context - The Transportation - Air Freight and Cargo industry is part of the broader Transportation sector, holding a Zacks Industry Rank of 103, placing it in the top 41% of over 250 industries [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]