Why United Parcel Service, Inc. (UPS) Is Gaining On Earnings Optimism Now

We recently compiled a list of the 5 Stocks Gaining On Earnings Optimism. In this article, we are going to take a look at where United Parcel Service, Inc. (NYSE:UPS) stands against the other stocks.

The earnings season continues to move stocks higher as big names deliver their quarterly performance reports one by one. As a result, analysts are updating their models with the latest numbers, resulting in rating changes for these companies.

As the US indices struggle to find a specific direction in today’s trading, some stocks are clearly on an upward trajectory. We unearthed these stocks by looking at the recent earning reports, analyst upgrades, and the earnings calendar. To come up with the list of 5 stocks gaining on analyst expectations, we only considered stocks with a market cap of at least $75 billion.

A warehouse filled with boxes of parcels, symbolizing the companies reliable logistics services.

United Parcel Service, Inc. (NYSE:UPS)

United Parcel Services Inc. is a package delivery company that provides contract logistics, transportation & delivery, airfreight, and other services. Evercore ISI increased the target price of UPS to $147 and added it to its Outperform list just before the release of its quarterly financial report.

Analysts believe that the stock can bounce back from poor one-year returns. The company is working on cost reduction and according to the management, UPS’ cost-saving measures could save as much as $3 billion by 2028. Margins are likely to jump with the help of these cost-reduction activities and improved stock performance will then only be a matter of when, not if. Once investors realize this shift, the stock may not be available at the current depressed levels anymore.

Overall UPS ranks 4th on our list of the stocks that are gaining on earnings optimism. While we acknowledge the potential of UPS as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as UPS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.