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

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The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. United Parcel Service (UPS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of UPS and the rest of the Transportation group's stocks.

United Parcel Service is one of 141 companies in the Transportation group. The Transportation group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. UPS is currently sporting a Zacks Rank of #1 (Strong Buy).

Within the past quarter, the Zacks Consensus Estimate for UPS's full-year earnings has moved 19.50% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, UPS has returned 36.30% so far this year. In comparison, Transportation companies have returned an average of -0.02%. This means that United Parcel Service is performing better than its sector in terms of year-to-date returns.

To break things down more, UPS belongs to the Transportation - Air Freight and Cargo industry, a group that includes 5 individual companies and currently sits at #5 in the Zacks Industry Rank. On average, stocks in this group have gained 47.30% this year, meaning that UPS is slightly underperforming its industry 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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