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Is United Parcel Service (UPS) Stock Outpacing Its Transportation Peers This Year?

Zacks Equity Research

Investors interested in Transportation stocks should always be looking to find the best-performing companies in the group. Is United Parcel Service (UPS) one of those stocks right now? By taking a look at the stock's year-to-date performance in comparison to its Transportation peers, we might be able to answer that question.

United Parcel Service is a member of our Transportation group, which includes 156 different companies and currently sits at #11 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. UPS is currently sporting a Zacks Rank of #2 (Buy).

Over the past three months, the Zacks Consensus Estimate for UPS's full-year earnings has moved 0.53% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that UPS has returned about 22.07% since the start of the calendar year. Meanwhile, the Transportation sector has returned an average of 12.97% on a year-to-date basis. As we can see, United Parcel Service is performing better than its sector in the calendar year.

Looking more specifically, UPS belongs to the Transportation - Air Freight and Cargo industry, which includes 6 individual stocks and currently sits at #171 in the Zacks Industry Rank. On average, stocks in this group have gained 13.22% this year, meaning that UPS is performing better in terms of year-to-date returns.

UPS will likely be looking to continue its solid performance, so investors interested in Transportation stocks should continue to pay close attention to the company.


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