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UPS Stock Surges 50.4% in Past 3 Months: More Room to Run?

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Shares of United Parcel Service (UPS - Free Report) have gained an impressive 50.4% in the past three months compared with its industry’s appreciation of 56.4%.

Shares of this package delivery company have been benefiting from the increased need for door-to-door delivery of essentials in the current pandemic-ravaged scenario.

Near Term Looks Rosy Too: Here’s Why

UPS, which delivered stellar results in the June quarter on the back of surging e-commerce demand, is expected to perform well in the September quarter as well owing to this tailwind. Increase in residential and healthcare shipments should aid its results. With the pandemic largely restricting people to their homes, consumers are placing orders more online.

In fact, UPS’ results should be aided by business-to-consumer shipment growth amid demand for residential delivery during the remainder of the year.

The upcoming holiday season (October 2020-January 2021) should provide a further boost to the company’s prospects. As is the case every year, the company is leaving no stone unturned to shine brightly in the upcoming holiday season. Management recently announced that it expects to hire more than 100,000 seasonal employees to meet the anticipated expansion in package volumes during the period.

UPS’ rival FedEx Corporation (FDX - Free Report) reportedly aims to recruit 70,000 seasonal workers to meet the likely swell in delivery demand. Notably, the annual vacations present a big opportunity for companies like FedEx and UPS to drive their revenues.

Coming back to UPS’ near-term possibilities, the 24.2% upward revision in the Zacks Consensus Estimate for current-year earnings further supports its sunny near-term prospects. Additionally, the stock sports a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here

Other Stocks to Conside

Investors interested in the Zacks Transportation sector may also consider Knight-Swift Transportation Holdings (KNX - Free Report) and Atlas Air Worldwide Holdings , both flaunting the same Zacks Rank as UPS at present.

Shares of Knight-Swift and Atlas Air Worldwide have rallied more than 13% and 39% in the past three months, respectively.

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United Parcel Service, Inc. (UPS) - free report >>

FedEx Corporation (FDX) - free report >>

Knight-Swift Transportation Holdings Inc. (KNX) - free report >>

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