United Parcel Service (UPS) Lifts Into Transport Leadership

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United Parcel Service (UPS) Lifts Into Transport Leadership - Investopedia

United Parcel Service, Inc. has ascended to the top of the transportation sector leadership list, ending a long period of laggard behavior. While shipping rival FedEx Corporation has posted higher returns so far this year, UPS stock has the added distinction of breaking out above five-year resistance, predicting potent upside going forward. Conversely, FedEx stock is now trading just below tough resistance at the 2018 bull market high, raising the odds for a reversal.

Key Takeaways
  • UPS stock broke out above five-year resistance in June.
  • The stock is now the strongest component of the Dow Jones Transportation Average.
  • Relative strength readings have reached extreme levels that raise the odds for a multi-week reversal.
Both companies can thank Amazon.com, Inc. and the pandemic for their improved fortunes. In April, the e-commerce giant chose to delay the buildout of an in-house delivery initiative in order to focus resources on its rising market share. The shippers rallied strongly on the news while also benefiting from higher volumes as a result of the pandemic-driven acceleration out of brick-and-mortar sales.
 
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