Home / Business and Economy / UPS Stock Beats S&P Transportation ETF Despite 52-Week Drop
UPS Stock Beats S&P Transportation ETF Despite 52-Week Drop
29 Nov
Summary
- UPS stock has gained 9.4% in the last three months, outperforming XTN.
- Q3 revenue exceeded analyst estimates by 2.9%, reaching $21.4 billion.
- Analysts maintain a 'Moderate Buy' rating with a price target 8.9% higher.
United Parcel Service (UPS), a prominent logistics company valued at $81.2 billion, has demonstrated recent resilience. Over the past three months, UPS shares have climbed 9.4%, outperforming the broader SPDR S&P Transportation ETF (XTN). This recent positive momentum is further supported by the stock trading above its 50-day moving average since mid-October.
Despite a 29.1% year-over-year decrease, UPS reported a stronger-than-expected third quarter. Consolidated revenue reached $21.4 billion, exceeding analyst estimates by 2.9%. The company also surpassed Wall Street's expectations for adjusted earnings per share, reporting $1.74 compared to an estimated $1.31, even as this figure represented a slight year-over-year dip.
Looking ahead, analysts hold a moderately optimistic view on UPS, with a consensus 'Moderate Buy' rating. The average price target from 30 analysts suggests a potential 8.9% increase from current trading levels, indicating confidence in the company's future prospects within the integrated freight and logistics sector.
