Back to top

Analyst Blog

United Parcel Service Inc., (UPS - Analyst Report) the leading international freight delivery company has launched a new express airfreight service ­­— UPS Worldwide Express Freight. The new offering is part of the UPS Worldwide Express package portfolio that distinguishes shipping experience between express package and express freight.

We believe the introduction of new service offers would attract new customers and help in retaining the existing ones, thereby boosting revenue growth for the company.  

UPS Worldwide Express Freight services would involve services similar to express package and customer can ship within UPS' global air network to 41 countries. The new service also promises the fastest service time of 1–2 day shipping to Canada, as well as 1–2 day shipping from Canadian to international destinations.  

We believe the company’s integrated sales approach also promises future growth, given its industry-leading margins and financial strength. The company is also seeking capacity adjustment by reducing Asian air networks to improve its cost structure.

Further, its focus on continued productivity gains, improved operating profit, and strengthening liquidity position amidst economic challenges are encouraging. Given these positive factors, the company expects fourth quarter earnings in the range of $4.55 to $4.65 per share, up 5% to 7% year over year.

For the coming quarters, UPS’ profitability level is expected to be boosted by a healthy performance in the Supply Chain and Freight segment, strong export volumes in International Package and improved margins in Domestic Package. We believe that over the long term, the company will continue to invest in technology and network enhancements, which would provide a competitive edge over its peers like FedEx Corporation (FDX - Analyst Report).

However, risks such as labor unionization, large European exposure and competitive threats from peers will likely keep the stock under pressure.

UPS currently retains a Zacks #3 Rank, implying a short-term Hold rating for a period of one to three months. We also maintain a long-term Neutral recommendation on the stock.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%