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Is United Parcel Service (UPS) Stock Outpacing Its Transportation Peers This Year?

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The Transportation group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. United Parcel Service (UPS - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? 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 141 companies in the Transportation group. The Transportation group currently sits at #4 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

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 22.66% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the most recent data, UPS has returned 20.74% so far this year. Meanwhile, stocks in the Transportation group have gained about 9.77% on average. This means that United Parcel Service is outperforming the sector as a whole this year.

To break things down more, UPS belongs to the Transportation - Air Freight and Cargo industry, a group that includes 4 individual companies and currently sits at #10 in the Zacks Industry Rank. Stocks in this group have gained about 18.56% so far this year, so UPS is performing better this group in terms of year-to-date returns.

Investors with an interest in Transportation stocks should continue to track UPS. The stock will be looking to continue its solid performance.


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