United Parcel Service, Inc. (UPS - Free Report) reached a tentative agreement with the Independent Pilot’s Association (IPA), representing its 2,959 flight crew members, for a two-year contract extension. The tentative deal approved by the five-pilot IPA Executive Board includes retirement enhancements and yearly pay hikes.
The contract will be reviewed by UPS pilots through Mar 10, following which the ratification process will begin. The three-week ratification vote will end on Mar 31.
UPS’ current contract with the IPA will become amenable on Sep 1, 2021. In the event of ratification of the tentative deal, the new contract will be amenable on Sep 1, 2023.
Price Performance
Sluggish air freight market due to lackluster demand from China as a result of the Sino-U.S. trade tensions, weighed significantly on UPS’ performance. With rapid growth in e-commerce, the company is spending heavily on capital investments to meet the surge in demand. For instance, it made capital investments of $6.5 billion in 2019. The amount is expected to further escalate to $6.7 billion in 2020 as UPS intends to invest in additional automated sorting hubs for expanding its retail client base. The higher capital expenses are anticipated to dent current-year earnings per share by roughly 33 cents. Due to these headwinds, shares of UPS have declined 6.8% in a year’s time.
Zacks Rank & Key Picks
UPS carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are GATX Corporation (GATX - Free Report) , Azul S.A. (AZUL - Free Report) and Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX flaunts an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 21%. Meanwhile, shares of Azul and Controladora Vuela have rallied more than 27% and 73%, respectively, in a year’s time.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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United Parcel Service, Inc. (UPS - Free Report) reached a tentative agreement with the Independent Pilot’s Association (IPA), representing its 2,959 flight crew members, for a two-year contract extension. The tentative deal approved by the five-pilot IPA Executive Board includes retirement enhancements and yearly pay hikes.
The contract will be reviewed by UPS pilots through Mar 10, following which the ratification process will begin. The three-week ratification vote will end on Mar 31.
UPS’ current contract with the IPA will become amenable on Sep 1, 2021. In the event of ratification of the tentative deal, the new contract will be amenable on Sep 1, 2023.
Price Performance
Sluggish air freight market due to lackluster demand from China as a result of the Sino-U.S. trade tensions, weighed significantly on UPS’ performance. With rapid growth in e-commerce, the company is spending heavily on capital investments to meet the surge in demand. For instance, it made capital investments of $6.5 billion in 2019. The amount is expected to further escalate to $6.7 billion in 2020 as UPS intends to invest in additional automated sorting hubs for expanding its retail client base. The higher capital expenses are anticipated to dent current-year earnings per share by roughly 33 cents. Due to these headwinds, shares of UPS have declined 6.8% in a year’s time.
Zacks Rank & Key Picks
UPS carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Transportation sector are GATX Corporation (GATX - Free Report) , Azul S.A. (AZUL - Free Report) and Controladora Vuela Compania de Aviacion, S.A.B. de C.V. (VLRS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
GATX flaunts an impressive earnings history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 21%. Meanwhile, shares of Azul and Controladora Vuela have rallied more than 27% and 73%, respectively, in a year’s time.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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