![]() However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about UPS. Click here to see the values of some of the valuation metrics that have driven this grade. UPS is graded B on this front, indicating that it is trading at a discount to its peers. ![]() Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.Ĭomparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.Īs part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B B is better than C and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. No investment decision can be efficient without considering a stock's valuation. The company topped consensus revenue estimates each time over this period. The company beat consensus EPS estimates in each of the trailing four quarters. EPS of $3.29 for the same period compares with $3.06 a year ago.Ĭompared to the Zacks Consensus Estimate of $24.73 billion, the reported revenues represent a surprise of +0.14%. UPS reported revenues of $24.77 billion in the last reported quarter, representing a year-over-year change of +5.7%. ![]() Last Reported Results and Surprise History For the current and next fiscal years, $101.67 billion and $103.62 billion estimates indicate +4.5% and +1.9% changes, respectively. So, it's important to know a company's potential revenue growth.įor UPS, the consensus sales estimate for the current quarter of $24.39 billion indicates a year-over-year change of +5.2%. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. Over the last 30 days, this estimate has remained unchanged.ġ2-month consensus EPS estimate for UPS _12MonthEPSChartUrl Over the last 30 days, the Zacks Consensus Estimate has changed 0%.įor the current fiscal year, the consensus earnings estimate of $12.85 points to a change of +5.9% from the prior year. UPS is expected to post earnings of $2.86 per share for the current quarter, representing a year-over-year change of +5.5%. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. When earnings estimates for a company go up, the fair value for its stock goes up as well. ![]() Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. ![]() 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. ![]()
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