UPS Expands in Asia With Hub at Clark Airport in the Philippines
United Parcel Service, Inc. UPS is actively forging ahead to strengthen its foothold in the Asia Pacific market. To this end, UPS has recently inked a deal with The Luzon International Premiere Airport Development Corporation (“LIPAD”) aimed at opening a new hub at the Clark Airport in the Philippines. The construction of the new hub is expected to begin in February 2025, and it is anticipated to be operational in late 2026.
Considering the fact that UPS has been doing business in the Philippines hub for more than 25 years, the new hub is expected to help UPS enhance its portfolio of integrated express, supply chain and healthcare logistics services.
Additionally, UPS' expansion in Clark should boost Pampanga with new job opportunities for the local community. The deal between UPS and LIPAD also plays a major role in placing Clark as a logistics hub suitable for global brands aiming to widen their international network.
This deal is the recent one in a series of the latest network and facility enhancements UPS has made across the Asia Pacific, including in Singapore, Japan, mainland China, Vietnam, South Korea, and Taiwan. The most recent one would be opening a new hub at the Hong Kong International Airport and near the Hong Kong-Zhuhai-Macau Bridge (anticipated to be completed by 2028).
Wilfredo Ramos, president of UPS Asia Pacific, stated, "Asia Pacific continues to be one of UPS's fastest growing regions. UPS has continued to invest in our network to maximize speed and flexibility, build solutions addressing the shift of global trade lanes, and offer resilience for our customers.”
Zacks Rank and Stocks to Consider
Currently, UPS carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportation sector are GATX Corporation GATX and SkyWest, Inc. SKYW. Each stock presently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX has an encouraging track record with respect to earnings surprise, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missing the mark in the remaining one). The average beat is 16.47%.
The Zacks Consensus Estimate for 2024 earnings has been revised 8.9% upward over the past 90 days. GATX has an expected earnings growth rate of 6.51% for 2024. Shares of GATX have gained 26% in the past year.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s 2024 earnings has improved 27.3% over the past 90 days. Shares of SKYW have surged 242.3% in the past year.
SKYW has an expected earnings growth rate of more than 100% for 2024. SKYW delivered a trailing four-quarter earnings surprise of 128.02%, on average.
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