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

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 higher today making it today's featured transportation winner. The industry as a whole closed the day up 0.4%. By the end of trading, United Parcel Service Inc (UPS) Class B rose $0.89 (1.0%) to $87.43 on average volume. Throughout the day, 2,862,628 shares of United Parcel Service Inc (UPS) Class B exchanged hands as compared to its average daily volume of 3,570,000 shares. The stock ranged in a price between $86.77-$87.82 after having opened the day at $86.80 as compared to the previous trading day's close of $86.54. Other companies within the Transportation industry that increased today were: FreeSeas ( FREE), up 11.7%, Seanergy Maritime Holdings ( SHIP), up 6.8%, Marten Transport ( MRTN), up 5.9% and Genco Shipping & Trading ( GNK), up 4.8%.
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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 and Freight. The U.S. United Parcel Service Inc (UPS) Class B has a market cap of $62.3 billion and is part of the services sector. The company has a P/E ratio of 94.4, above the S&P 500 P/E ratio of 17.7. Shares are up 17.4% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate United Parcel Service Inc (UPS) Class B a buy, no analysts rate it a sell, and 9 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 increase in net income, revenue growth, growth in earnings per share, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

On the negative front, Newlead Holdings ( NEWL), down 25.1%, Frontline ( FRO), down 10.5%, Globus Maritime ( GLBS), down 8.2% and Ultrapetrol Bahamas ( ULTR), down 6.5%.

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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