UPS’s 40% gains since 2011 may sound impressive, but it’s actually one of the worst performing transports on a relative basis.
Shares of UPS are up 40% since August of 2011. And while that may sound impressive, it really isn’t.
As Oppenheimer’s Carter Worth points out, that return has actually trailed the transports over that period of time. In other words, if you’re looking to play this sector, UPS's stock has been a big brown mess and is certainly not the way to go.
Some market participants say that underperformance might be due to UPS’s international exposure. And according to Enis Tanner of RiskReversal.com, the chart is offering little hope too.
Specifically he says UPS’s false breakout in July will now serve as resistance going forward. That’s a bad thing for investors who are hoping for more gains.
So do the fundamentals back this up. Watch the video above and decide for yourself.