United Parcel Service Inc.UPS recently decided to build six compressed natural gas (CNG) fueling stations and add 390 new CNG tractors and terminal trucks along with 50 liquefied natural gas (LNG) vehicles to its fleet.It will invest more than $90 million in the project.
United Parcel boasts of more than 4,400 natural gas vehicles and a network of fueling stations as it aims to use natural gas as an alternative fuel. In 2016, United Parcel used more than 61 million gallons of natural gas in its ground fleet, which included 4.6 million gallons of renewable natural gas. The company can thus avoid the use of conventional gas and diesel which in turn has reduced carbon dioxide emissions by 100,000 metric tons.
The new CNG stations are expected to be built in Ontario, CA; Orlando, FL; Salina, KS; Louisville, KY; Greensboro, NC and Vancouver, B.C. In 2016, United Parcel shelled out around $100 million in CNG fueling stations and vehicles. At present, the company operates 31 CNG fueling stations in Alabama, Arizona, California, Colorado, Georgia, Kansas, Kentucky, Louisiana, Nevada, Oklahoma, Pennsylvania, Texas, Virginia, Tennessee and West Virginia, and runs CNG vehicles across 38 U.S. states in addition to the vehicles in Germany, the Netherlands and Thailand. United Parcel also bought 50 additional LNG vehicles that were deployed in Indianapolis, IN; Chicago, IL; Earth City, MO and Nashville, TN.
We note that United Parcel, which competes with likes of FedEx Corporation FDX, has been making constant efforts to expand. Toward this end, it has inked multiple deals and launched products to assist customers.
United Parcel Service, Inc. Price
United Parcel Service, Inc. Price | United Parcel Service, Inc. Quote
Zacks Rank & Key Picks
United Parcel currently holds a Zacks Rank #4 (Sell). Better-ranked stocks in the broader transportation sector are Radiant Logistics RLGT and Gol Linhas Aereas Inteligentes GOL. Both Radiant Logistics and Gol Linhas sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Radiant Logistics performed impressively in the fourth quarter, delivering an earnings surprise of 900%, while shares of GOL Linhas gained more than 58% in the last six months.
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