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Has United Parcel Service (UPS) Outpaced Other Transportation Stocks This Year?

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For those looking to find strong Transportation stocks, it is prudent to search for companies in the group that are outperforming their peers. Is United Parcel Service (UPS - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Transportation sector should help us answer this question.

United Parcel Service is one of 140 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 proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics 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 13.08% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Based on the most recent data, UPS has returned 39.82% so far this year. Meanwhile, the Transportation sector has returned an average of 10.37% on a year-to-date basis. This means that United Parcel Service is performing better than its sector in terms of year-to-date returns.

Looking more specifically, UPS belongs to the Transportation - Air Freight and Cargo industry, a group that includes 4 individual stocks and currently sits at #9 in the Zacks Industry Rank. Stocks in this group have gained about 63.60% so far this year, so UPS is slightly underperforming its industry this group in terms of year-to-date returns.

Going forward, investors interested in Transportation stocks should continue to pay close attention to UPS as it looks to continue its solid performance.


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