United Parcel Service Inc (UPS) Class B (UPS): Today's Featured Transportation Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

United Parcel Service Inc (UPS) Class B ( UPS) pushed the Transportation industry lower today making it today's featured Transportation laggard. The industry as a whole closed the day up 0.3%. By the end of trading, United Parcel Service Inc (UPS) Class B fell 73 cents (-1%) to $71.88 on heavy volume. Throughout the day, 26.8 million shares of United Parcel Service Inc (UPS) Class B exchanged hands as compared to its average daily volume of 3.5 million shares. The stock ranged in price between $71.18-$72.94 after having opened the day at $72.33 as compared to the previous trading day's close of $72.61. Other companies within the Transportation industry that declined today were: Roadrunner Transportation Systems ( RRTS), down 5.2%, Ship Finance International ( SFL), down 3.5%, Frozen Food Express Industries ( FFEX), down 3.4%, and TOP Ships ( TOPS), down 3.4%.
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United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. United Parcel Service Inc (UPS) Class B has a market cap of $53.94 billion and is part of the services sector. The company has a P/E ratio of 18.7, above the average transportation industry P/E ratio of 18.3 and above the S&P 500 P/E ratio of 17.7. Shares are up 1.5% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate United Parcel Service Inc (UPS) Class B a buy, one analyst rates it a sell, and eight rate it a hold.

TheStreet Ratings rates United Parcel Service Inc (UPS) Class B as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the transportation industry could consider iShares Dow Jones Transportation ( IYT) while those bearish on the transportation industry could consider ProShares UltraShort Industrials ( SIJ).

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