UPS Rides High on FedEx's Soaring Quarter

UPS (United Parcel Service) stock witnessed a surge today, buoyed by the impressive performance of its competitor FedEx in the third quarter. FedEx's robust results, including earnings that beat analyst expectations by nearly 12%, lifted UPS shares in sympathy.

In its recent quarterly report, FedEx reported earnings of $3.86 per share, exceeding estimates and marking a significant increase from the previous year. Despite slightly missing revenue estimates, the company showcased its confidence by announcing a new $5 billion share repurchase program, with plans for $500 million in share repurchases in the coming quarter.

While FedEx's success may have set the stage, UPS has been holding its ground. Although UPS reported a 7.8% revenue decline in its fourth-quarter fiscal 2023 results, its adjusted EPS met consensus estimates. With FedEx's strong showing, investors are hopeful for similar resilience from UPS in the quarters to come.

Technical Outlook
UPS shares is trading with a moderate Relative Strength Index (RSI) of 58.89 indicating a moderate buying situation. The bulls might continue pushing the share price higher.

In a market where delivery services play an increasingly crucial role, UPS 's response to FedEx's success will be closely watched by investors and industry observers alike.