![]() ![]() UPS reported revenues of $22.93 billion in the last reported quarter, representing a year-over-year change of -6%. Last Reported Results and Surprise History The $96.45 billion and $99.22 billion estimates for the current and next fiscal years indicate changes of -3.9% and +2.9%, respectively. In the case of UPS, the consensus sales estimate of $23 billion for the current quarter points to a year-over-year change of -7.1%. Therefore, knowing a company's potential revenue growth is crucial. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:Įven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, UPS is rated Zacks Rank #3 (Hold). Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Over the past month, the estimate has changed -2.4%. This estimate has changed -6.1% over the last 30 days.įor the next fiscal year, the consensus earnings estimate of $11.39 indicates a change of +5.2% from what UPS is expected to report a year ago. The consensus earnings estimate of $10.83 for the current fiscal year indicates a year-over-year change of -16.3%. The Zacks Consensus Estimate has changed -7.1% over the last 30 days. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.įor the current quarter, UPS is expected to post earnings of $2.49 per share, indicating a change of -24.3% from the year-ago quarter. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. And if earnings estimates go up for a company, the fair value for its stock goes up. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. ![]() Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. The key question now is: What could be the stock's future direction?Īlthough media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. During this period, the Zacks Transportation - Air Freight and Cargo industry, which UPS falls in, has lost 9%. Over the past month, shares of this package delivery service have returned -10.9%, compared to the Zacks S&P 500 composite's +0.6% change. ![]() So, you might want to look at some of the facts that could shape the stock's performance in the near term. United Parcel Service ( UPS Quick Quote UPS - Free Report) has been one of the most searched-for stocks on lately. ![]()
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