The latest trading session saw United Parcel Service (UPS) ending at $119.02, denoting a +1.91% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 1.12% for the day. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 1.46%.

Coming into today, shares of the package delivery service had gained 4.49% in the past month. In that same time, the Transportation sector lost 5.31%, while the S&P 500 lost 4.13%.

The investment community will be closely monitoring the performance of United Parcel Service in its forthcoming earnings report. In that report, analysts expect United Parcel Service to post earnings of $1.52 per share. This would mark year-over-year growth of 6.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.35 billion, down 1.64% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.87 per share and a revenue of $88.39 billion, representing changes of +1.94% and -2.94%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for United Parcel Service. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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. Within the past 30 days, our consensus EPS projection has moved 3.5% lower. United Parcel Service currently has a Zacks Rank of #4 (Sell).

Investors should also note United Parcel Service's current valuation metrics, including its Forward P/E ratio of 14.84. For comparison, its industry has an average Forward P/E of 14.87, which means United Parcel Service is trading at a discount to the group.

It's also important to note that UPS currently trades at a PEG ratio of 1.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Transportation - Air Freight and Cargo industry had an average PEG ratio of 1.24.

The Transportation - Air Freight and Cargo industry is part of the Transportation sector. Currently, this industry holds a Zacks Industry Rank of 225, positioning it in the bottom 11% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

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United Parcel Service, Inc. (UPS) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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