United Parcel Service, Inc. UPS is actively forging ahead to strengthen its foothold in the Asia Pacific market. To this end, UPS has recently inked a deal with the Hong Kong Airport Authority aimed at opening a new hub at the Hong Kong International Airport and near the Hong Kong-Zhuhai-Macau Bridge.
The new hub, anticipated to be completed by 2028, should serve as UPS Hong Kong's main center for processing and managing imports, exports, and transshipments to and from Europe, the United States, and other parts of Asia.
The hub will be built on an area of 20,000 square meters, having direct access to aircraft. Powered by state-of-the-art sorting and scanning technology, the hub will be fully automated and environment-friendly. The hub is being constructed in such a way as to accommodate almost 1 million tons of annual capacity.
Apart from enhancing UPS’ existing operations in Hong Kong, this move is an initiative on the company’s part to expand its presence in the Greater Bay Area and serve the growing Asia Pacific consumer market. Last month, UPS completed a major expansion of its package sorting hub at Clark Airport.
Daryl Tay, president of UPS North Asia District, stated, "Hong Kong continues to be an engine of growth and a critical part of UPS's global smart logistics network. This new hub, along with our existing operations at Shenzhen Bao An Airport, demonstrate our continued commitment to Asia. We will continue to invest in areas of our network that bring unique value to our customers and create additional growth opportunities for UPS."
Zacks Rank and Stocks to Consider
Currently, UPS carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Transportation sector are Westinghouse Air Brake Technologies Corporation, operating as Wabtec Corporation WAB, SkyWest, Inc. SKYW and FedEX (FDX). Each stock presently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Wabtec has an expected earnings growth rate of 22.02% for the current year. WAB delivered a trailing four-quarter earnings surprise of 7.11%, on average.
The Zacks Consensus Estimate for WAB’s current-year earnings has improved 5.1% over the past 90 days. Shares of WAB have gained 20.4% year to date.
SkyWest's fleet-modernization efforts are commendable. The Zacks Consensus Estimate for SKYW’s current-year earnings has improved 31.5% over the past 90 days. Shares of SKYW have surged 191.9% year to date.
SKYW delivered a trailing four-quarter earnings surprise of 32.57%, on average.
FedEX has an expected earnings growth rate of 21.46% for the current year. FDX delivered a trailing four-quarter earnings surprise of 16.94%, on average.
The Zacks Consensus Estimate for FDX’s current-year earnings has improved 5% over the past 90 days. Shares of FDX have gained 52.7% year to date.
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