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UPS Hopes for 1.9M Package Returns on National Returns Day

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United Parcel Service, Inc. (UPS - Free Report) expects yet another record-setting National Returns Day on the back of significant rise in online shopping during the holiday season.

The company anticipates to receive a record 1.9 million returns packages into its network on Jan 2, the National Returns Day. The figure representing a 26% increase from that recorded a year ago will create a record for the seventh consecutive year.

Given the rapid growth in online shopping, e-commerce sales have reportedly touched a record high this holiday season. Per Mastercard's data, e-commerce sales jumped 18.8% year over year in the period between Nov 1 and Dec 24, 2019.

UPS is benefiting immensely from this solid uptick in e-commerce, especially on the domestic front. Evidently, the company’s U.S. Domestic Package revenues grew 9.8% in the third quarter owing to 9% volume expansion across all products. Moreover, UPS anticipates cross-border e-commerce volumes to augment 28% during the 2019-2021 period.

Courtesy of rising package volumes and the company’s measures to reward shareholders through dividends and buybacks, UPS’ shares have rallied more than 23% in a year’s time compared with the industry’s 12.9% rise.



 

Zacks Rank & Key Picks

UPS carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are Hawaiian Holdings, Inc. , Ryanair Holdings plc (RYAAY - Free Report) and GATX Corporation (GATX - Free Report) . While Hawaiian Holdings and Ryanair Holdings sport a Zacks Rank #1 (Strong Buy), GATX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Hawaiian Holdings, Ryanair Holdings and GATX have gained more than 16%, 21% and 19%, respectively, in a year’s time.

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